I'm trying to sell my condo. If I I sell the condo at a lower price than I paid, would that free me from my old loan?
2007-12-08 20:31:53 · 2 answers · asked by Miss T 3 in Business & Finance ➔ Renting & Real Estate
No, it will not, unless you pay out of your pocket the difference between what you owe and what you receive at time of closing. You would have to pay that amount at closing time. You can sell your condo for whatever you desire as long as you manage to pay the lender what is due.
If you can't pay the amount due at closing, you won't be able to close without lender permission to do a 'short sale' either. Such short sales can only be completed with lender approval ahead of time, along with lender approval of the amount offered.
A short sale will ding your credit pretty seriously, and you may as well receive a Form 1099 at year end requiring you to claim as income the amount of the mortgage shortfall.
2007-12-08 21:36:18 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
No, it certainly will not. Whatever you owe now on the condo will be due and payble upon the sale of your condo
2007-12-09 05:56:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋