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When you sell your house do you pay off your existing mortgage?
Wiki User
∙ 9y ago
United Kingdom
Yes is generally the correct answer. Check with your lender for more details. It is possible to move a loan that is secured by a mortgage (or trust deed) to another property if the lender will approve the substitution of collateral. It is much more common when dealing with investor loans or in the UK. So, legally there is the possibility but practically most loans are paid off when the
property securing the loan is sold.
United States
In the United States the mortgage is paid off from the proceeds of the sale as part of the closing. That is one of the responsibilities of the attorney who represents the seller. Generally, mortgages contain a clause that allows the lender to demand immediate payment in full upon any change in ownership.
Wiki User
∙ 9y ago
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What happens when you die and leave a mortgaged house to someone?
They now have a house with a mortgage on it. If they cannot, or do not wish to, pay the mortgage, they will have to sell the house, pay off the mortgage, and keep the remainder of the money. The mortgage holder may require you to get a new mortgage on the property, rather than assume the existing loan. You are essentially leaving them what ever value you own of the house.
Can you transfer your home mortgage to your mother and get it out of your name?
Not without the consent of your lender, no. You could sell your house to her, but then your mortgage company would expect to be paid off; you can't sell her your house for less than you owe on it without making up the difference yourself.
If you are selling your house do you have to pay off your second mortgage or can you keep making payments?
When you sell your home all liens against the property have to be paid so you will have to pay off the second mortgage at the closing.
What kind of paperwork does the trustee need in order to sell the house after filing chapter 13?
Unless the house was owned free and clear by the debtor, the trustee does nothing. The mortgagee forecloses and auctions the house off. If there was no mortgage, the trustee will either sell the house or auction it off.
Can you get a reverse mortgage and get the equity you have in it out even if your house is not paid for?
Yes, as long as you use the proceeds from the reverse mortage to pay off any existing mortgages.
Should you pay off your house mortgage?
Yes, you should pay off you house mortgage because otherwise, you do not truly own your house.
You sell a house and can not pay off the mortgage will you be liable for the remaining dollars owed?
Well, you can't sell it if you can't pay off the loan against it. (You can't provide clear title to the buyer unless the liens are paid off at the closing and no new mortgage he needs can be put in first place of the existing one). Yes your responsible to pay off the loan in full. However, another arrangement (a short sale) may be able to be worked out with the lender. If your in bankruptcy there may yet be other alternatives.
What if the estates debt is a mortgage?
The executor of the estate has the option of continuing to pay the mortgage and thereby continuing to own the property (which is presumably a house) or selling it. When you sell a house that has a mortgage, some of the purchase price will go to you, based on your equity in the house, and some will go to pay off the mortgage. If there is little equity in the house, or if the housing market is very depressed, you may realize little or no profit on the sale of the house, but you won't have to continue paying the mortgage.
Do you have to pay off a home equity loan when you sell your house?
Yes. The buyer's attorney will make certain the mortgage is paid off from the proceeds of the sale. They are obligated to do so.
Can you qualify for a Reverse mortgage with balance owed on original mortgage?
Yes. The reverse mortgage must however pay off the existing mortgage balance, which means you need some equity to make the qualification work. If there is not enough equity in the home to qualify for a reverse mortgage you may choose to bring in the amount needed to finish paying off the existing mortgage- thus eliminating the mortgage payments for good.
Who is responsible for a mortgage if the owner dies before its paid off and the house is left to her son in a will?
The mortgage should be paid by the remaining estate. If there is not enough cash left to pay off the mortgage, the house can be sold and the mortgage paid at closing, or if the mortgage is assumable, the son may take on the mortgage as his own debt and keep the house.
Owe 65 thousand to first mortgage 40 thousand to second mortgage but second mortgage is foreclosing how will first mortgage get there money?
In foreclosure proceedings the 1st mortgage gets their money first. Either the 2nd mortgage will have to buy the 1st mortgage entirely and then sell your house or they will have to hope that whoever buys the mortgage at auction, will bid enough to pay them off.
