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Selling a home that has a mortgage

On Behalf of | Jun 14, 2022 | Real Estate

Several reasons may prompt someone to sell their home, such as seeing the market become hot. Selling a Rhode Island property might not be too difficult when the title is free and clear. However, some other concerns may arise when there’s a balance remaining on the mortgage. Still, it might be possible to proceed with the sale without many troubles.

Selling a home with an existing mortgage

The most important thing for sellers to realize is no rule bars them from selling a home that still has a mortgage. The seller may address the issue of the existing mortgage during the escrow process.

Paying the mortgage off may not require liquidated assets or engage in convoluted, stressful steps. The seller could use the funds provided by the purchaser to pay off the balance. The lender provides a mortgage payoff statement that details the precise amount owed. The parties involved in the closing should do their part to ensure things go smoothly.

Moving forward with the closing

When buying or selling residential real estate, some issues may arise that require attention. For example, problems related to procuring a mortgage payoff statement or booking an appraiser might delay the closing date. Since the closing date connects to a formal contract, legal steps become necessary to extend the date.

Sometimes, serious issues could arise. If any party violates the sales contract, the aggrieved party may take legal action to address the matter.

Buyers and sellers might not understand the contract’s language at the beginning. Asking for a legal review by an attorney could allow a professional to review the document and provide answers to pertinent questions.