What Happens to Your Mortgage Loan When You Sell a House?
The process of selling a home is never easy. It involves lots of paperwork and renovations, and you have to find a professional and experienced real estate agent. If you still have a mortgage on your property, selling your home will be even more complicated. At the same time, selling a house with a mortgage is absolutely normal. Most homeowners do not stay in their homes before their mortgage is paid off. If you are one of these homeowners, and you want to know what happens to your mortgage when you decide to sell your property, this article is for you.
What Happens to a Mortgage When You Sell Your Home the Traditional Way?
In most cases, if you are selling a home the traditional way, you will be able to sell it for more than you owe on the mortgage. Homeowners that have been paying their mortgages on time for many years are able to build up equity that they can cash out when a home is sold. The amount that you will receive will be enough to pay off the remaining mortgage and make a new down payment on the new house you are purchasing. You just need to make sure that the real estate market is good and stable and that you have kept your property in a good condition. However, the situation may be completely different and more complex.
What Should You Do If You Cannot Pay Off Your Remaining Mortgage?
If the price of your home is not high enough to pay off the mortgage, the property is considered “underwater.” This means that you owe more than your property is worth. In this case, selling a property with a mortgage is much more complicated, and the traditional way of selling may not be a good idea. The good news is that there are other options available.
Consider a Short Sale
A short sale (also known as pre-foreclosure sale) is when you sell your property for less than the remaining mortgage balance. In order to conduct a short sale, you need to write a hardship letter to your lender, in which you will provide an explanation of why you are not able to pay off the mortgage. Supportive documentation is also required, including documents such as your paystubs, tax returns, and other financial documents.
Selling Your Home to a Home Investor
One of the quickest and most effective ways to sell your home, especially if you are selling a home with a mortgage, is selling it to a home investor or cash buyer. One of the main advantages of this type of sale is that home investors can close on the deal in a few days. Home investors buy properties in any condition or location, and they pay homesellers cash. As a homeowner selling your property, you do not have to make any repairs or worry about preparing your home for sale and organizing showings and open houses.
If you have a property with a mortgage in Killeen, TX, or any other surrounding towns and communities, We Buy Killeen Houses is ready to help you. We purchase all types of properties, including houses, apartments, condos, and townhomes. We purchase them as is, and we are ready to pay you cash immediately. If you want to know more about our company, learn how we work, or discuss the sale process of your property, all you need to do is to visit our website or simply give us a call. We are always here for you. Our mission is to make the selling process as straightforward and easy for you as possible. Feel free to give us a call any time.