Can You Sell a House with a Mortgage?
Many homeowners wonder if it is possible to sell their house if they still have an outstanding mortgage balance. The short answer is yes, one can sell one’s house even with a mortgage balance. However, there are several things you should take into consideration before you start the home-selling process.
Selling a home in Milwaukee or surrounding areas can be a time-consuming and discouraging process. However, at Fair Deal Home Buyers, we help make the process easy and hassle-free without worrying about making any repairs. We buy houses in Wisconsin in "as-is" condition and pay all cash - no hidden fees or strings attached.
Understand you mortgage
First things first, it is important to understand your mortgage terms. Mortgages differ and come with varying conditions and clauses. For example, prepayment penalties or restrictions on early sales. Talk to your lender to make sure you understand your mortgage and how it might affect the sale of your property.
Assess your home’s market value
You’ll also want to know your house’s market value, because it will affect your selling strategy, which includes the listing price and marketing costs. To accurately assess your home's value, consider talking to a professional. To get a valuation, you can also put your address in Google and do a search, which will pull up websites like Zillow, Realtor.com, Redfin, and others.
Pay off your mortgage
If possible, you could pay off your mortgage entirely; however, not everybody has that much money on hand. But if you can do this, you will eliminate the mortgage lien, which will make the sale much more straightforward.
Sell with an assumable mortgage
Some mortgages are assumable, meaning the buyer can take over the existing mortgage when purchasing the property. If you have an assumable mortgage, it can be an attractive selling point. Buyers may find it appealing, especially if your mortgage terms are favorable compared to current market conditions.
Short sale option
If the housing market is not in your favor, and you owe more on your mortgage than your home's current value, a short sale might be a viable option. In a short sale, the lender agrees to accept less than the total amount owed on the mortgage. While it can negatively impact your credit score, it can help you avoid foreclosure and the associated consequences.
Talk with your lender
Whatever strategy you choose, you should communicate with your mortgage lender. Tell them about your intentions and keep them updated throughout the process. They might be able to help you navigate around any potential problems and can make the process run smoothly.
Work with a cash buyer
Perhaps the simplest and fastest way to sell your house is to sell to a cash buyer. Cash buyers like us do not need third-party lenders because we have the money in the bank. This means we can quickly make an offer. What’s more, when you sell to a cash buyer you don’t have to put your house on the market and pay realtor commissions and other fees. We also help our clients navigate the home-selling process by assisting with paper work and mortgages.