Top 8 Little-Known Facts to Sell a House on Mortgage

sell a house on mortgage

When You Want to Sell a House on Mortgage

If you’re considering how to sell a house on mortgage for any reason whatsoever, you’ve probably got tons of really specific questions you can’t seem to find direct answers to just piling up. Google searching can keep you even more in the dark regarding certain issues. For this reason, we’ve put together this useful list of frequently asked real estate questions with straight forward answers that can help point you in the right direction. If you don’t find the answer you were looking for, feel free to contact us directly 24 hours a day.

  1. Can You Sell A Home Which Is On Mortgage?

Yes, you most certainly can. In fact, this is a common occurrence in the real estate business. Approximately two-thirds of the American home owner population still owe on their mortgage and the median amount due exceeds $120,000. In an ideal situation, you sell your home and use that money to pay off the mortgage, pocketing the remainder of the money and putting it towards a new home. Under less ideal circumstances, the financing can be a bit trickier, but selling is still a possibility.

  1. Can’t Sell House For What I Owe. What Should I Do Now?

One common scenario homeowners who want to sell a house on mortgage run into is when their house is worth less than what they owe. This is often the result of needing to sell quickly, at a time when market prices are on a downward trend. That doesn’t necessarily mean you should stick it out, with the hope that someday your house’s value will increase. In truth, the opposite could happen, jeopardizing your family and your bank account.

If you can’t sell a house on mortgage for what you owe and you need to relocate immediately, you can choose to take a short sale, an option that might lower your credit or affect your tax filing status. If you’re eligible, a bridge loan (a lump sum that bridges the gap between what you owe and what you need) could also be an option. Before you start taking out loans or working through credit deals, it’s important that you double check the value of your home. A cash buyer might be able to bring your total up by tens and thousands of dollars, effectively bridging the gap without making lending a necessity.

  1. Can’t Sell House What To Do?

If a real estate agent or traditional lender told you that your house is unsellable, your best bet is to check in with a cash investor instead. Because cash buyers are in the business of investing as opposed to lending, they can often sell houses that traditional real estate agents previously deemed impossible to sell.

  1. Do I Have To Sell House In Divorce?

The answer to this one depends on court rulings and various different components such as when the house was purchased and whether or not it is considered a “marital home”. If you were the sole owner of the property prior to being wed and your spouse is not on the title or the deed, you might not have to sell the house at all. Alternatively, if a judge draws the conclusion that the marital home should be given to a single party (usually whoever has primary physical custody of minor children) then that individual can choose to sell or keep the home. Selling the home only becomes a requirement when a local judge rules that the house in question is a “marital home” and that the equity must be divided. In this situation, a divorced couple may be given a timeframe in which to sell the house or they might be mandated to sell immediately.

  1. Do I Need Deeds To Sell House?

You do not always need a physical copy of the deed in order to sell a house on mortgage. Usually, the original deed to the property is electronically recorded in the region where the property was purchased. In the event that you lost or misplaced the deed, a certified copy can be made available upon request.

  1. Do I Need Solicitor To Sell House?

In some states, like Florida, a legal representative is not required to oversee a house selling transaction.

  1. Do You Have To Sell House To Pay For Care?

Elder care can become expensive, especially if you or a loved one must move into a nursing home in order to receive ongoing treatment. Many senior house owners worry that moving into a nursing home automatically means giving up their residence. That doesn’t have to be the case. Nursing homes are not in the business of confiscating houses as a form of payment. However, it should be duly noted that a house is considered an asset by the U.S. government. If you or someone you love is considering moving into an elder care facility, that asset can quickly become a liability that rules out Medicaid as an option. For this reason, selling the property could prove beneficial, but it isn’t a requirement.

  1. Do You Need Probate To Sell House?

This is a question that typically comes up when an estate is inherited. If you recently inherited a property you’d like to sell, the way in which that property was distributed will determine whether or not you need probate. In short, you do not usually need probate if you inherited the property by deed. If on the other hand, your inheritance was passed down through a will, probate is a necessary legal proceeding. Inheriting a house by trust usually requires undergoing probate as well, particularly in cases that involve minor children.

As you can see, there are many viable reasons to sell your house. Whether you’re facing divorce, considering a nursing home, or dealing with an inheritance, it’s important that you speak with a professional regarding this timely matter. Don’t hesitate to contact us if one of the aforementioned questions applies to you. We’re always on the line to expand upon our answers and to field further questions.