Comments on: Can I sell a house without paying off mortgage?

By: tex k

tex k — Wed, 06 Jan 2010 23:27:26 +0000

No because to clear a mortgage you not only pay the outstanding sum left to pay but a proportion of the interest that the bank would have charged over the 15 years.Also you will never get a cash loan at a lower rate than a mortgage rate.And if you reckon your investment return will be higher than your mortgage charge then you are sadly misguided or misinformed.You would be far better renting the house paying the mortgage of as fast as possible and then selling .I reckon you could pay the mortgage of 8 years early without incurring penalty charges ( but this does depend on your lender)then sell the house on the open market .

By: Jesse Willms

Jesse Willms — Wed, 06 Jan 2010 23:27:26 +0000

When you sell the house the bank will require you to pay off the mortgage before they transfer title over to the new buyer.

They do this because otherwise they would have no collateral on the money you still owe them (i.e. they couldn’t foreclose on the house from the new owner if you stopped paying.)

By: Connie L

Connie L — Wed, 06 Jan 2010 23:27:26 +0000

No, when you sell the property, the mortgage is due.

Your sale proceeds should cover the mortgage balance, you can use what is left for your investments.

By: Howard L

Howard L — Wed, 06 Jan 2010 23:27:26 +0000

Not to repeat what the others have said but the mortgage holder has a lien on the property which means you can’t give or sell title to someone else without satisfying the lien. The only way to satisfy a lien is to pay the amount owed. When a property is sold a title search is performed. The purpose of the title search is to find out who actually owns the property and to find out if there are any liens which would prevent the purchaser from obtaining title to the property.

By: Kd D

Kd D — Wed, 06 Jan 2010 23:27:26 +0000

There are a few options available to you. You can ask the lender if the note on the property is assumable. In that case, a buyer can take over the payments you once made. You may also do what is called a
"wrap around" mortgage or "all inclusive" loan. In this case, ownership of the property transfers to the buyer but the loan remains in your name. Your loan agreement may have an "acceleration clause which would make the loan all due and payable upon transfer of property to someone else so both you and the buyer must be aware of the risks involved. It’s important to have a separate account set up where an executor receives payments from the buyer, then sends those payments to the lender. In any event, it is imperative that both you and the buyer have hazard insurance for the property to protect you and the lender (bank).

By: Expert Realtor

Expert Realtor — Wed, 06 Jan 2010 23:27:26 +0000

No, you cannot.

Because there is a mortgage lien against the home, you cannot pass clear title to the new owner.

Your lender will NOT negotiate that option.

By: infinite crisis 247

infinite crisis 247 — Wed, 06 Jan 2010 23:27:26 +0000

nope…the lien must be satisfied before title can change hands.

By: Alterfemego

Alterfemego — Wed, 06 Jan 2010 23:27:26 +0000

No, the property is collateral for that mortgage.

By: David M

David M — Wed, 06 Jan 2010 23:27:26 +0000

Maybe. But ask Loan Answers. I love these guys.

twitter.com/loanswers

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