If we sell our house for less than we paid for it, what happens? Does the left over money become some type of mortgage itself? A loan? Rolled over into a new mortgage on a new house? Thanks!
2007-03-05 14:03:31 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If you sell the house, you have to find some way to pay off the mortgage. Your mortgage is secured by the banks claim to the house, so if you sell it, the loan will become due immediately. If you have other assets, you could take out a loan on them and pay off the remaining balance of the loan.
2007-03-05 14:07:37 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You can not sell your house without paying the entire loan amount off unless the lien holder ok's it with what is called a short sale. Here is the process to selling a home. If there is not a Realtor involved, if there is a Realtor they will know all of this information I am giving you here. You get a signed contract from someone who agrees to buy you house for a set amount of money, you then take the contract to a title company, (also known as a escrow company, closing company). They prepare the title which means they check with your local county courthouse they check public records to make sure you or the buyer does not have any judgments and to see who has the mortgage against the home. Once they know who is holding the mortgage they will contact that mortgage holder to obtain a payoff for the property. When they see you you owe more on the house than the sales contract states, they will contact you because you will have to come up with the rest of the money that is owed on the loan. The title company can not close the transaction until all liens against the property has been satisfied at the time of closing. In some cases the lender will take a lower payoff to close the deal but there usually has to be extraordinary circumstances for them to take what is called a short sale. Hope this helps you out and answers some questions for you.
Good luck
2007-03-05 22:28:38 · answer #2 · answered by Paul 2 · 0⤊ 0⤋
If you owe more money than you can sell the house for, you will have to come to the closing with the difference or you won't be able to close.
If you don't have the money and can't get it anywhere, then you can talk to your lender about doing what is called a short sale. If they approve a short sale, then you won't have to come up with the difference. If that's the route you want to take, they will have you fill out a lot of paperwork explaining your situation and showing them that you have no other means of paying the difference.
Lenders will usually only do this if there is a chance that you would be going into foreclosure and the lender could end up losing more than if they did the short sale.
If you do that, be sure you talk to the bank about how they will report this on your credit report. Chance are it would have a serious negative effect that would be similar to a foreclosure.
2007-03-05 22:14:19 · answer #3 · answered by Anonymous · 1⤊ 0⤋
no you still have to pay the money. The person who you pay the mortgage to isnt going to sign off their interest in the home until the FULL MORTGAGE AMOUNT IS PAID. therefore the prospective new buyers wont own the house
2007-03-05 22:11:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
There are people that would like to take control of your mortgage and make all repayments until it is finally refinanced.The system is called a lease option. If you were in Australia I would be happy to do it. Not SA.
2007-03-08 07:15:12 · answer #5 · answered by bonza 1 · 0⤊ 0⤋
You cannot sell the house if you don't own it. If you cannot payoff the loan you have at house closing, then the house belongs to the bank, not to you, so you cannot sell it.
2007-03-05 22:11:31 · answer #6 · answered by Larry 6 · 0⤊ 0⤋