When you sell your home and have auto payment (arrears, mortgage, mortgage company)
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The auto pay is actually thru your bank. You signed authorization for the mortgage company to set it up. You should take it off auto pay when the home sells. Any future payments should be made by check - some take up to 2 weeks to work thru the system. Remember, mortgage payments are paid in arrears, or after the fact. The April 1 payment was for March. So, if you were closing on April 6, you could bring that payment to closing. However, if you have your auto-pay set to pull on the 5th, that payment may not be reflected in the payoff.
The good news is, the bank cannot legally collect more interest than it is owed and all will be refunded to you. (or should be) Make sure they have a forwarding address for you.
Not a sales situation, but I refinanced with the very same bank that did my former loan, and even though I called them and told them to cancel the autopay for the old one, they took the next payment anyway and seemed genuinely surprised when I told them that they needed to put it back in my account just as fast as they had taken it out.
You need to log on to your banks website or call your bank to turn automatic payment off. Otherwise the bank will still issue payment for your mortgage and it may be a month or so until you get the money back.
As soon as it looks fairly certain the deal is going to go through, I would contact the bank to cancel the autopay immediately, even if it means you'll have to "manually" make a payment or two.
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