Around 60 percent of American homes today are under a mortgage. For many Americans, this means that moving to a new house involves selling their current one with a mortgage attached.
Selling a mortgaged house is a bit more complicated than selling one that’s mortgage-free—but it isn’t impossible. Understanding what the process is like and what you need to know ahead of time can help the process go much more smoothly.
Ready to learn how to sell a mortgaged house? Keep reading to find out!
Check With Mortgage Lender First
Before you sell a house with a mortgage, it’s important to contact your mortgage lender. You’ll want to check the remaining balance on your mortgage, to make sure that you’re selling your home at a rate that’s high enough to pay off that existing balance.
You should also take some time to review your existing mortgage loan paperwork. Look for a due-on-sale clause; this clause requires homeowners to pay their mortgage loan in full before they sell their home.
If your mortgage paperwork doesn’t feature this clause, you could sell your home for less than you owe on your mortgage, and continue paying your mortgage after the sale. This is important for those who may have borrowed against their home or for homes that’s value has decreased since the initial purchase.
Get a Real Estate Agent
While it is possible to sell your home on your own, working with a real estate agent is a good idea if your home has a mortgage. They will help you to understand the process and file the necessary paperwork after finding a buyer.
When you do find a buyer, the money they pay for the home can then go towards paying your mortgage off. If they also apply for a mortgage to purchase the home, the check from their lender will go directly to your lender to pay down your existing mortgage.
Sell to a Commercial Homebuyer
If you’re looking to sell a mortgaged house fast or don’t want to deal with the complicated process of showing your home to potential buyers or working with a real estate agent, there is an alternative.
Commercial home buying companies buy up homes, including both those with a mortgage and those that are mortgage-free.
Because you are selling directly to a company, you won’t need to worry about making repairs or finding a real estate agent. No listings or home showings are required—instead, you sell to the company, and they handle the rest.
For instance, when you work with Sell Now Home Buyers, they’ll purchase your home as-is, and get you your money fast. If you’re in a hurry to move, your home would need work before it could be sold to a buyer, or want to pay down your mortgage as soon as possible, this is a great option!
The money that you receive from the sale can then be used to pay off your existing balance on your mortgage. Anything left over after that is the profit you get to keep!
Learning How to Sell a Mortgaged House
Learning how to sell a mortgaged home doesn’t have to be complicated. By working with a real estate agent or selling directly to a commercial home buyer, you can pay down your mortgage and get your home sold quickly and easily!
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