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What happens if I sell my home before the mortgage is paid off?

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(@helen-olamide)
Posts: 2050
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[#2625]

What happens if I sell my home before the mortgage is paid off?


 
Posted : 28/04/2024 4:20 pm
(@edwardadex233)
Posts: 1000
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If you sell your home before the mortgage is paid off, you'll typically need to use the proceeds from the sale to pay off the remaining mortgage balance. This is known as the "payoff" amount. Here's what usually happens:

 

1. You'll need to contact your lender to determine the payoff amount, which includes the outstanding principal, interest, and any fees.

2. The buyer's funds will be used to pay off the mortgage, and any remaining amount will go to you, the seller.

3. If the sale price is less than the payoff amount, you may need to pay the difference out of pocket or negotiate with the lender to accept a short sale or deed in lieu of foreclosure.

4. If the sale price is more than the payoff amount, you'll receive the excess funds after the mortgage is paid off.

 

Keep in mind that there may be additional costs, such as closing costs, real estate agent fees, and taxes, which will be deducted from the sale proceeds. It's essential to review your mortgage contract and consult with a real estate agent or attorney to understand the specific requirements and implications of selling your home before paying off the mortgage.


 
Posted : 30/04/2024 5:22 pm
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