Question re mortgage higher than house value

[Perchy]

I am wandering what happens when you sell property for less than what the mortgage is owed? Would the bank allow it to go to sale?

 

[Rolf Latham]

yes, if you can clear the balance of the debt

ta

rolf

 

[Ausprop]

the other way to aproach it would be to buy the mortgage from the bank. once you have the mortgage you have the property

 

[Perchy]

What if you domt have enough to pay out the motgage, say by 20k?

 

[Aaron_C]

What if you domt have enough to pay out the motgage, say by 20k?

Then you are in trouble.

 

[Rolf Latham]

What if you domt have enough to pay out the motgage, say by 20k?

personal loan or credit card is a common fix

At that point the lender wants your under the water mortgage gone anyways and will facilitate a number of options

ta
rolf

 

[Terry_w]

If you can't discharge the mortgage then the bank won't release the property.

This can cause settlements to fall over.

Do you have any other assets?

 

[Ausprop]

If you can't discharge the mortgage then the bank won't release the property.

This can cause settlements to fall over.

Do you have any other assets?

and then the bank can take possession and charge $30k in outrageous legals to fire sale it for even less than you would have sold it

I think the OP is trying to buy a house not sell it?

 

[boomtown]

Bank will often allow vendor to sell and take balance as a personal debt. If the vendor is in that bad shape it's a good move to extract as much money back as fast as possible.