When you own a home or piece of property, it is rare that you will own it outright. Holding a mortgage on the property is very common and it is difficult to find any homeowner that actually doesn’t owe on the property where they live. Quite simply, having a mortgage on the home is a basic part of home ownership but you may be wondering if it is possible to sell a house while it is still holding a mortgage.
A mortgage is a type of loan that covers the cost of the home and is paid on over time in order it to allow you to make a large purchase. In most cases, mortgages will range from 15 years up to 30 years or perhaps even more. It is rare, however, for anyone to stay in their home the entire time that they are holding the mortgage, and they may eventually want to sell it for one reason or another. This is possible, but there are some things to consider before you end up signing on the dotted line.
One important factor to selling your home is finding out the value of the property. you can talk to an investor for a floor idea of what you can get quickly. A real estate agent can often assist you in determining an approximate value and this can go a long way in helping you to sell the home successfully. In the ideal situation, the amount that you owe on the home is going to be less than the value of the home. The difference, in that case, is known as equity and it is not only possible to sell your home, in this case, you may even walk away with some money in your pocket.
Unfortunately, there may be sometimes that you find the value of your home is lower than what you still own the mortgage. This is become common in recent years, especially after the value of real estate dropped sharply about a decade ago. Many people find themselves owing more on their property than what it was worth, which is commonly referred to as being upside down or underwater. In these cases, selling the home for a profit was impossible and there were very few options for getting out from underneath the debt.
If you find yourself in a less than ideal situation and owe more on the house than what it is worth, there may still be options to sell the home successfully. Often, it is necessary for you to negotiate with the bank and to come up with a solution that is going to work for everyone involved. This could include a short sale, in which you do sell the home for less than what it is worth. Unfortunately, this could result in you being responsible for the shortfall in some way or another.
Is best if you speak to a real estate agent about the specifics for selling your house prior to the time that you move forward. It can go a long way in helping you to make a decision that is right for you.