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If I sold my house for less than I owe on my mortgage what happens?
Do I need to payoff the mortgage immediately or can I keep making monthly payments on the house that I don’t own anymore?
...asked on December 25th, 2011 @ 6:00 am in Loan - Home
As I understand, you’d have to pay it immediately (or get a different loan to pay it) as you no longer have anything to back the mortgage.
...answered by Danielle F on December 25, 2011 @ 6:49 am
Unless you have an agreement with your lender to the contrary, you will need to show up at closing with the deficiency amount in the form of a certified check.
...answered by acermill on December 25, 2011 @ 7:09 am
You have to pay off the loan at the settlement table.
...answered by angels_harp_2000 on December 25, 2011 @ 7:49 am
Talk to the bank.
To do a short sale, you need their permission.
If this is a recourse loan, they can agree to let you continue to make payments on the shortfall.
If you have privately sold the property and decided to not tell the bank, you may find that the entire loan is due on demand.
...answered by v b on December 25, 2011 @ 8:07 am
(1) Show up at settlement with the balance. If you owe $ 100,000 and you sell for $ 90,000, you show up at settlement with $ 10,000 in cash.
(2) Do a “short sale” on the property. In that case, the sales contract is made contingent upon the lender accepting less than is owed. So you owe $ 100,000. The contract is for $ 90,000, contingent upon the lender accepting $ 90,000. If the lender approves, the property is sold. Your credit is injured, and you may (at the lender’s discretion) owe tax on the $ 10,000 that the lender was shorted.
Those are your only two options. In either case, the mortgage must be paid off before title can be transferred. You cannot keep making payments on the house you used to own.
...answered by I Buy And Sell Houses on December 25, 2011 @ 8:11 am
If you are selling your house for less than you owe on the mortgage you have to pay the balance off before the house can sell. Monthly payments would not be allowed.
...answered by Sweetharttt on December 25, 2011 @ 8:15 am