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#3525 - 10/21/04 04:56 PM mortgages
wardx5 Offline
New Poster

Registered: 10/21/04
Posts: 1
I am selling a home. The buyer is paying me cash. Can I pay my mortgage holder 1/2 of my balance and keep making payments on the rest?

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#3526 - 10/21/04 05:02 PM Re: mortgages
Anonymous
Unregistered


The buyer of your home will not have clear title or ownership of the property you are selling. Your mortgage company will not release their interest in the property (their right to foreclose) until you pay them off.

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#3527 - 10/21/04 05:15 PM Re: mortgages
Dan Persfull Offline
Compliance is my life

Registered: 08/28/02
Posts: 16057
Loc: Bloomington, IN
Also look at your mortgage document. Most mortgages will have a "Due on Sale" clause which requires you to pay the mortgage in full if you sell the property.

More than likely, the title company handling the transaction will also require that certified funds be brought to the closing to satisfy the existing mortgage in order to properly transfer a clear title to the buyer.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#3528 - 10/22/04 04:06 PM Re: mortgages
WildTurkey Offline
Platinum Poster

Registered: 01/17/03
Posts: 905
Loc: Down South, USA
Quote:

The buyer of your home will not have clear title or ownership of the property you are selling.....



To paraphrase, a property that is mortgaged isn't yours to sell. For you to sell it, and get "your cash" (sales price less mortgages and selling expenses) out, you must settle the mortgage with the lender so that they will turn over the deeds to the buyer, or more probably the buyer's mortgage lender.
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This is my opinion; it is not legal advice, nor the view of my employer, and it may change tomorrow.

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