How do you sell a house that has a loan on it?
Buyer is paying for the property from his own savings
It is a simple process as the seller can ask his lender to provide loan outstanding certificate.
In return, a buyer can pay the down payment directly to seller’s loan account.
Once the amount is cleared, the bank will hand over the documents.
What happens if you sell your house and still owe money?
If the loan is paid off, then you can sell your home for pure profit, with money in your pocket, and move on to the next home. You can relax, because there are several ways you can accomplish this even if you owe significant amounts of money on the home. You can sell your home even if you still owe for it.
Why mortgage companies sell your loan?
Why do lenders sell mortgages? There are basically two main reasons why a lender might sell your mortgage. The first has to do with capital. When a loan gets sold, the lender has basically sold servicing rights to the loan, which clears up credit lines and enables the lender to lend money to the other borrowers.
How do I sell my house with an outstanding loan?
OPTION 1: IF BUYER PAYS FROM HIS OWN SAVINGS
- The process is simple as there is no bank involved by way of loan from the buyer’s end.
- The seller can request the bank to provide a loan outstanding letter.
- Instead of paying to the seller, down payment can be directly made to the seller’s loan account.