What Happens to Your Mortgage When You Sell Your Tulsa House?
Life changes faster than most homeowners can pay off their mortgage. As such, it’s common for many to sell a Tulsa house with a mortgage. Since you’ve signed legal paperwork with the bank that says you’ll pay them for the home, what happens when you sell?
What Happens to a Mortgage Loan if You Sell Your Tulsa House for Profit
The ideal scenario for a home sale is to bring in more for your home than you owe on your mortgage. If you’ve consistently paid your mortgage and the housing market is stable, you should have home equity. If your Tulsa house is in good condition, you can sell it and use the money for a down payment on a new home. The mortgage on the first home is paid off, and if needed, you get another mortgage for your new home.
However, your situation will be more complex if you cannot pay off your loan completely.
What Happens If You Are Not Able to Pay Off Your Loan?
There may be a situation when the price of your property is not high enough to sell your Tulsa house and pay off the mortgage. That means that you owe more than your property is worth. In this case, your home purchase loan is considered “underwater.” Selling a property with an underwater loan is complicated, and the traditional sale is not the best decision. However, there are other options you can consider. Here are two.
Short Sale
A short sale occurs when a property is sold for less than the remaining mortgage balance. Choose this option by writing a letter to your mortgage lender explaining why you cannot pay the full amount. Supportive documentation is also required, including pay stubs and tax returns. If your mortgage lender approves your application, your property will be listed as a short sale. All offers will be forwarded to the lender, who will accept, reject, or counter them. Upon the sale of the property, there are two possible results: the lender may either waive the remaining amount or seek a deficiency judgment against the homeowner.
Selling Your Tulsa House to a Cash Buyer or Home Investor
Homeowners struggling with a mortgage may opt for a quick and effective solution by selling their home to cash buyers. This eliminates the need for cleaning, repairs, or renovations and allows for a fast sale within a few days. However, if the sale does not cover the mortgage, the homeowner must work with the lender to create a mutually beneficial plan. To quickly sell your Tulsa home while still under a mortgage, We Buy Houses Tulsa are available to assist you and are ready to purchase your house without delay, regardless of its location or condition. If you have any questions, please visit our website and fill out our form, or call us at 918-739-6777. Our experienced agents are here for you.