A lien is a legal claim that can affect a property or the money due at closing. A payoff is the current amount and instructions from the creditor or tax office to satisfy an obligation. An older bill or record may not show today's figure, so the current amount and release instructions need to be confirmed.
The title company checks ownership and recorded claims for the transaction and works with the creditor or tax office on payoff information. The closing figures show how the agreed payoffs and other charges are handled.
When you sell to us, we pay the closing costs. Your liens are paid off from the sale at closing.
Closing costs are separate from mortgage balances, liens, back taxes, and your share of current property taxes. Those amounts are confirmed for the property and shown in the settlement figures.