the title insurer would therefore not insure the title and the new lender would not fund the new mortgage. The sale simply would not go through.

In a traditional sale,
Ping G20 Sale, the seller pays the lender the balance due on the mortgage and the lender releases the lien on the property. If the owner attempted to go through with a sale in which he did not fully repay the lender,
Titleist 913 Sale, the lender would not release the lien,
Titleist AP1 Sale, the title insurer would therefore not insure the title and the new lender would not fund the new mortgage. The sale simply would not go through.