Article Score0

She said if you brought home for $ 150,000 and you owe $ 98,000 and if home is worth $ 180,000 your equity is $ 82,000. She said even if you had home listed for $ 180,000 you’re gonna only get your equity once it sales.

5 Thoughts on My mom says when you sale a home you will only get your equity out of no matter if you have high sale price?
  1. Reply
    August 29, 2012 at 3:14 pm

    house sells for 180K , u owe 98K = u get 82K
    less expenses

  2. Reply
    August 29, 2012 at 4:03 pm

    Your mom is correct. The reason is that you still owe that $ 98,000 to the bank, which you have to pay off when the house is sold. When a home has a mortgage, the bank holds a lien on the deed as the home is collateral for that mortgage. Until the mortgage is paid off, the bank will not release the lien on the deed so that it can be transferred to the new owners.

  3. Reply
    Cathi K
    August 29, 2012 at 4:40 pm

    Do you even know what equity is? It is the difference between what it sells (not sales) for minus what you owe so of course you only get your equity. The lender always gets paid first.

  4. Reply
    Beverly S
    August 29, 2012 at 5:39 pm

    Okay… When you sell the home you have to pay off the mortgage balance. So no matter how much you sell it for – you owe $ 98,000.00 to the mortgage. You get all the difference less any costs incurred to sell it.

  5. Reply
    August 29, 2012 at 6:13 pm

    Sales Price – Loan – Fees = What you get. What you get is the equity in the home. What you paid for it is a different story. In your example, even if you paid $ 200,000 you’d still get the equity out. You’d just have a loss.

    Leave a reply

    Register New Account
    Reset Password