If you think you’ve made a mistake or have taken wrong action in purchasing a property, but still have a balance to pay off, do not be worried! The truth is, most people don’t pay off a property in full over the course of the mortgage agreement, especially on 30-year loans. The processes involved are very simple, and there are many ways in which you can qualify. There are three main options to consider for this, which is probably the reason for your click here.
It’s important to know that you can sell without any restriction if the balance on the mortgage is paid on time each time. If payments are owed, it is still possible to sell the property. However, the property needs to undergo a process known as “short sale” which is selling the property that payments are currently behind on. This needs permission from the lender themselves and will cause damage to your credit score. This is an important consideration as credit score is vital to securing future real estate.
Another interesting method is to sell the mortgage note and the property security at the same time. This process involves selling the deed of trust, land contract, existing mortgage loan, and the real estate contract to a note buyer. This route can be risky without prior knowledge, so it would be good to go into it with a consultant and your own knowledge of how to sell real estate contracts. An amazing guide was made by Pocket sense, which shows you exactly how to do this.
A more common way of doing this is to sell the property and finance it for the next person to buy. This process essentially makes you the lender and the buyer is responsible for paying the mortgage loan you owe. They do this by paying through mortgage payments and down payment, just like you have, except this time it’s payable to you. This is a very fast method which can circumvent the general difficulties of dealing with lenders or if you’d like to give the home to those who may not qualify for a loan through a bank, for example. This method is good, but risky. It’ll have to be focused on scheduling the new owner of the home to provide payment at the proper times for your mortgage due dates to your previous lender.
As stated by Investopedia, it’s important to know how convenient this process is because of how the middle-man is effectively removed from the equation. As long as the mortgage is still in the process of payment (and on time), you can easily negotiate with an individual and sell it directly to them. That is why it is always important to consider how prepared you are when going into a home purchase, be it financially or mentally. Income is just as important as if you love the home in determining if you’d keep it, which is why most investors understand and would gladly take it off your hands.