How do you sell your home when you still owe money on the mortgage? Owing money after selling your house depends on the type of debt you owe. There are two types of loans you should know about:
- Secured Loans
The most common secured loan is a mortgage which is held against the value of the property.
- Unsecured Loans
These are loans that are not collateralized against the value of the property. They may include student loans or private loans, credit cards, and overdrafts.
If you have secured debt, then you must pay it off before you close the sale of your house. But with unsecured loans, you will not be required to make full requirements so long as you keep to the repayment plans.
However, because of the high-interest rate on unsecured loans that lenders charge, most people prefer to sell their house first and then use the profit to pay off the loan.
Can I Sell My House with Mortgage Arrears?
Yes, you can sell your house even when you’re yet to complete your mortgage payment. However, you may not be able to pull this off if you’re declaring bankruptcy or if you move into a house that requires you to pay increased monthly expenses than your former mortgage.
Can I Keep The Profit If I Sell My House Above What I Owe?
Yes, you can sell your house for more than you owe and keep the profit- you can pull this off if you get an offer that is higher than your mortgage amount. This means you must have acquired a substantial amount of home equity and can take the balance as your profit.
If you’re having a hard time clearing mortgage debts, the best way around this is to sell a property. This method works well if you’ve managed to build up a significant amount of equity during the time you owned that property.
The Best Way To Sell Your House In Austin
Most homeowners sell their houses with the help of a real estate agent or realtor. However, other homeowners sell their house to a cash home buyer to avoid the stress and hassles involved with putting your house on the general market.
When you put your house up for sale, it may take a long time to find an interested buyer or a buyer who’s ready to buy at the best price. At Austin All Cash, we buy houses Austin at the best prices and ensure to get your house off the market in record time.
If you’re looking to sell my house fast Austin, then you’re in the right place. Trust Austin House Buyers to buy your house at a fair cash price. You’ll not have to pay any realtor fee or renovation fee.
You’ll only be required to agree with our offer (which is always competitive) and then we’ll proceed to buy your house.
Contact us today to learn more about our services!