What happens when you sell your house before it is paid off?

Home Forums Buying Your Home What happens when you sell your house before it is paid off?

This topic contains 5 replies, has 2 voices, and was last updated by  admin 3 years, 3 months ago.

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  • #34644

    admin
    Participant

    Let’s say I have a house with a mortgage that has yet to be payed off, but I have have to move. What happens? Do I sell it to a real estate company or what?

    #151640

    admin
    Keymaster

    you need to put it on the market to sell and pay off your mortgage. then if you have equity and or money left over from the difference between the sale price and what is left on the mortgage you can use that money to put down for another home or save it for the future.

    #151641

    admin
    Keymaster

    That situation is by far the majority of sales you see on the market.

    You put your home on the market and sell it. When this happens, your lender gets paid first. If you have a 2nd on the house that lender gets paid next. Whatever is remaining is yours. If the price you can get for you house is less than the amount you owe on your mortgage then your lender will need to approve a short sale since they would be losing money.

    #151642

    admin
    Keymaster

    Most people still owe money to their lender when they sell their house. Very few are selling with 0 balances on their mortgages.

    You would call up a realtor and place the house on the market. You would need to sell it at a price that would allow you to pay your lender off and pay the fees you will owe to the realtors. If you are lucky, you will have some equity in the place and may even walk away with a bit of money too.

    No, you do not sell it to a real estate company. They don’t want to buy your house, they want to sell it to an individual or investor.

    #151643

    admin
    Keymaster

    Your realtor can help you with that. When you sell basically, the price asked for the property covers all the expenses including the mortgage balance and realtor fee’s.

    #151644

    admin
    Keymaster

    Doesn’t matter who you sell it to. You just have to make enough on the sale to pay off the mortgage

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