Buying a house with a home loan offers several advantages, including tax benefits, increased property value, and stable housing expenses. The need to move to another home could arise at any time for multiple reasons, but what happens to the mortgage? Can you sell a house before paying it off?
Next Step Offers, a respected cash home buyer in Las Vegas, Nevada, knows how to sell a home with an existing loan, as explained below.
What’s the Mortgage Payoff Process When Selling Houses in Nevada?
Can you sell a house before paying it off? It’s possible.
Most homeowners in Nevada have a mortgage, which typically has a 30-year term. Since people are likely to move before they pay off their loan outright, they use an escrow company to use funds from the house sale to satisfy the remaining loan balance.
Here’s how it works:
- Stay current on your mortgage payments to stay in good standing with your lender.
- Request the loan payoff amount in writing from your lender.
- Set a price for your home and estimate your net proceeds.
What Happens to the Mortgage When You Sell a House and the Payoff Is Greater Than the Sale Price?
Sometimes, the amount sellers receive from a home sale is less than the amount they owe on their mortgage. When this happens, sellers are “underwater” and must figure out how to pay the remaining balance due at closing. Resolutions may include delaying the sale to generate more equity, using personal funds, or setting up a temporary rental.
Options for Selling a House Before Paying Off the Mortgage
Since you know the answer to “Can you sell a house before paying it off?” Let’s explore your home selling options below.
Conventional Home Sale
During a traditional home sale, you would hire a real estate agent to facilitate the process on your behalf. The proceeds from the sale would go toward paying off the mortgage balance. This option would likely require home improvements to yield a higher asking price.
Short Sale
With a short sale, you can sell your home quickly for a price less than the home loan balance. The lender will accept the lower amount if they approve the sale.
Cash Buyer
Selling your home to a cash buyer is another option. The house will sell in as-is condition.
While it may not yield a price as high as a traditional home sale, the proceeds will go to the lender first, and you’ll get the excess. You can also save on home improvements.
Turn to Next Step Offers To Sell Your House With an Existing Home Loan
Don’t hesitate to contact Next Step Offers if you’re asking questions like “Can you sell a house before paying it off?” As a respected cash home buyer in Las Vegas, Nevada, we have 15 years of experience making fair cash offers for residential properties in the community. Because we close quickly on homes in as-is condition without costly fees, we can help people avoid foreclosure, deal with job loss, and address other challenges.
Ready to get your cash offer? Call Next Step Offers at (702) 389-1919.