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Important Facts About Mortgage Payoffs

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One question that pops up quite often is about selling a house, even with an existing mortgage. Surprisingly, selling a house with a mortgage happens quite frequently. The fact is that a mortgage must be paid off in a certain number of years. Generally, the mortgage is for a length between 15 to 30 years. Let’s face facts. Very few people stay in their home for that length of time. Therefore, they decide to sell their home with a mortgage still remaining. However, it is also wise for the home seller to move ahead cautiously.

Mortgage Payoff

The key to selling your house successful is very simple. Make sure that you know the amount that is left on your mortgage. Sell your house at a price that covers that amount and earns you a profit. Get started by working with a professional real estate agent or contacting your mortgage lender for instructions on your outstanding mortgage balance and a mortgage payoff amount. Generally, this mortgage payoff amount is only valid for a certain length of time.

Find A Real Estate Professional

The next step requires you to contact a real estate professional or real estate agent to handle all the important real estate detail work. Certainly, it is vital that the paperwork and detail work go smoothly. Therefore, work with a real estate agent. The agent will make sure that you receive enough money for the mortgage payoff or to pay off the entire balance of your mortgage loan and other fees. The real estate professional will also work with a property title company to make sure there are no remaining issues with the title to the property.

Possible Complications

In a perfect world, the mortgage payoff would go smoothly. The home owner would sell the property at a price that paid off the entire mortgage and loan and the fees involved. However, complications might arise. For example, the house market value is not worth the amount that is left on the mortgage loan. This might result in a short sale. Short sales were very prevalent in a down economy that watched the price of properties drop across the country a few years ago. The property owner will have to contact the mortgage company to arrange an acceptable lower selling price with them.

Other Possibilities

Often, a homeowner is in a rush to sell their property because they are not able to make the mortgage payments, or they are in a rush to move to another location. Therefore, another reasonable possibility is to find an investor to take over the current mortgage payments. Certainly, this is a good deal, if the mortgage rate for the property is lower than the current mortgage rate. Of course, the individual would have to meet certain income criteria to assume the mortgage.

Perhaps, you are considering selling a property with an existing mortgage. More people than you might imagine, are in the same situation. The information included here provides property owners with a few other options.