So long story short, I bought a condo about a year and a half ago. I haven't paid off the mortgage obviously, and it was a 30 year payoff plan or whatever.
My aunt is a realtor so she really knew what was happening. But things have happened and I was considering moving/selling the place. But since I have had the 30 year agreement or whatever, what happens if I want to sell it and haven't paid for the entire thing (basically barely any of it, actually)?
Do I have to pay for the other 28.5 years? Does the bank take it and then when the next buyer purchases, they go through that?
I looked online and I have found numerous, different answers, so I thought I'd ask here.
you have to talk to the bank. the new owner will probably take over your mortgage and pay you the difference if you are able to swing it. if the rate stays the same it should be a better deal than if it is cleanly purchased. if its variable rate there's no benefit to anyone.
Smh. depends. If you can sell it for more than the mortgage is, yes you're on the hook for it but you pay it off.
If you can sell it for slightly less than the mortgage, then you're on the hook for the difference.
In both cases, the bank will often let the new buyer take over the mortgage instead of making you pay the early payment penalty in your contract (because banks like receiving regular interest, and don't want to do the work to find someone else to loan that money to)
You can walk away from a house that's underwater, generally the bank can go after EITHER the house OR you but not both. This will hurt your credit, but is not as bad as bankruptcy or foreclosure. This is the one that started the sub prime mortgage collapse when a lot of flippers walked away from underwater mortgages (owed more than could sell the house for) and stopped paying. TELL THE BANK if you do this, otherwise you are on the hook for any subsequent damage to the house.
If you can show hardship and the bank agrees to take less money from a seller, that's called a short sale.
Foreclosure is if you aren't paying the mortgage and the bank takes back property to resell. If it's more than mortgage and costs, you get the balance. Will hurt your credit a ton. Often can take 1-2 years before they get far enough into the process to kick you out.
Wow, bad advice here.
>Buyer takes out their own mortgage
>That pays off your loan and gives you any extra
The only twist is if you can't sell it for more than what you owe. Then you need to OK a "short-sale" with your bank so they will forgive the amount that isn't covered. Or you can pay the difference and that will be better for your credit score.
Good luck, I would expect it sells for more than you owe.