Can you sell a house in Milwaukee, Wisconsin even if you haven’t paid off your mortgage? Yes, you can! Here’s what happens on such occasions.
Most people aren’t aware that you can sell your house even if you still have some mortgage to pay. You can sell a property even if you owe money on it. However, there are a few things you need to be aware of.
What Happens In A Regular Sale?
During a traditional sale, you should be able to sell a house for more than what you owe. This is the case if you’ve built some equity over the years, as you’ll have something to cash in on. If you’ve regularly paid your mortgage over the years, chances are you’ll earn at least some money on your house sale.
When you decide to close on a house, you’ll get the settlement for the money you agreed upon. However, from that money, you’ll have to pay for the closing costs, including agent commissions, taxes, home equity loans, and the remaining amount of mortgage. Only once you’ve paid all of this can you get the finances that will be considered as a profit.
What Happens In A Short Sale?
A short sale is when a house is sold for the less than the total amount you owe on a house. This means you’ll still end up owing the lender money. As the owner, you’ll have to contact the mortgage company and ask them if they’ll accept the loss, since they won’t end up with all the money they borrowed you. This can slow down the process, as you’ll need to wait for the approval from the bank
What Happens When You Buy And Sell A House?
If You Sell A House First
If you’re trying to sell a house and buy a new one, you might do better when you sell a house first. This way, you’ll get paid for selling your old property, and then you can use these funds to make the down payment. Of course, this is if the debt isn’t too large.
If You Buy First
If you buy before you’ve sold your old house, you will have to work a bit harder as dealing with the transactions might be a bit challenging. Not to mention that this isn’t a recommended way to go if you’re still owing on your mortgage, as funds might be a problem. Some of the things you may want to do is to either use a home sale contingency, get a bridge loan, or carry two mortgages.
Sell A House To A Direct Buyer
Probably the best option you have, when you want to sell a house that you still owe money on, is to sell to a direct buyer such as Sparks Property Investors LLC. We will take care of your debt for you and pay it ourselves. We also don’t care about the condition of your house – we’ll buy as-is. At the same time, we’ll pay in cash, so you can start looking for that new house in no time. This is a no-hassle method to get rid of all your troubles.