2007-01-26 19:07:15 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Yes. You no longer own the house, so you would have no collateral for the credit line. Plus, the bank would need to release the lien on the property.
2007-01-26 19:10:27 · answer #1 · answered by Omni D 5 · 1⤊ 0⤋
Yes you will have to pay this lien off. Who ever th escrow closing officer is will get title report from title company. On the title report will be all mortgage owed against the house to include any liens placed against it.
The escrow closing officer will send a demand request to each person listed on the title report. Those companies or individuals to include the person or company that has your line of credit will send a demand for payment and tell the escrow closing agent how much you owe them.
Now once all the funds from the new lender for the new buyer received the escrow closing officer will then pay off the demands first, any back taxes you might have owed, your share of any closing cost.
Now what ever is left a check will be made out to you as payment for your house.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-01-26 20:21:38 · answer #2 · answered by Skip 6 · 3⤊ 0⤋
Skip's answer is very good and complete. But let me put it in other words:
You're basically asking if it okay to sell a house but not repay a mortgage attached to the house. You know the answer to that already.
2007-01-26 21:52:23 · answer #3 · answered by CJKatl 4 · 1⤊ 0⤋
Yup, it is ALL on the credit reports and everyone with liens will collect before you do. They will take it before you are cut a check.
2007-01-26 19:16:44 · answer #4 · answered by kate 7 · 1⤊ 0⤋