Considerations in Selling Your Home with Two Mortgages
There may be many different reasons why you choose to have two mortgages for your home. The reason often is paying loans in the most efficient way possible. There are some instances that you are not able to pay a home with just one mortgage, thus, you opt to get another one.
What to Think When Selling Your Home with Two Mortgages?
First of all, think of it as just like selling a home with only one mortgage. It can be a bit complicated along the way but if handled properly will be very easy.
The first thing you should consider is to put the right price on it. Talking with your real estate agent can help you decide the perfect price rate to list it at. This price should be more than the amount of the two mortgages combined, and you should still make a profit after spending the significant amount for all the processes. Upon the completion of the closing agreement, the title company will hand over to you the amount that is left from the selling process.
Also, you should be careful with few problems that could result in some hassle in the process. One of the problems that you can have is if your home has decreased in value over the years since you bought it. You may have some difficulties in affording the mortgage loan that you need to pay.
In some instances, you can pay the mortgage loan with your own personal cash at hand. Another option is you can go for a short sale agreement with the lender. Short sale agreements involve informing the lender that you need to sell the home as soon as possible if you cannot pay the mortgage full. Explain to them all of the details, and express that you need to sell the home because of financial issues. Your goal in this situation is to persuade the lender that you cannot pay your mortgage loan at its full rate.
Selling a home with two mortgages is just like processing a property with one mortgage. You just have to make sure to handle it properly so you can avoid having problems with the lender afterward.
Call me today and have me work for you. You will be thankful that you did!
Your Realtor for LIFE
Do you want your home selling experience to be made easy?
Ed Constable is a top Realtor in Fenton, MI, and surrounding areas!