Can a home
seller sell a home for less than its mortgage?
Yes, in some
case you can sell your home for less than what you still owe on the mortgage.
But it is complicated and depends on the lender. This situation is known as a
"short sale." Sometimes a lender will be willing to split the
difference between the sale price and loan amount, which still must be paid.
A short sale may
be more complicated if the loan has been sold to the secondary market because
then the lender will have to get permission from Freddie Mac, the two major
secondary-market players.
If the loan was
a low down payment mortgage with private mortgage insurance, then the lender
also must involve the mortgage insurance company that insured the low-down
loan.
How does a home
go into foreclosure?
Foreclosure
proceedings usually begin after a borrower has skipped three mortgage payments.
The lender will record a notice of default against the property. Unless the
debt is satisfied, the lender will foreclose on the mortgage and proceed to set
up a trustee sale.
More San Diego
Real Estate Selling Tips:
Search for San
Diego Real Estate:
RSS feed