Lender Wants Money Received for Land-Taking? (closing, sale, house, bank)

[BishBash]

The state took a tiny piece of land in front of my house, and paid me $5000 for it. I used the money to pay off a credit card.

Now, a month later, Bank of America wants the money to apply it to my mortgage principal. They quoted me the clause in my mortgage-- ok, I get it. I initialed the page at closing.

Question is, I'm closing on the sale of my house in 5 weeks. I don't have the $5000. How will this "debt" get washed out in my closing?

Weird question, I know. Thanks.

[NY Annie]

If you're closing in a month, then you should be asking the bank.

[BishBash]

Originally Posted by NY Annie

If you're closing in a month, then you should be asking the bank.

I plan to when the banks opens tomorrow.