Board Topic: selling a house with a mortgage
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selling a house with a mortgage

Posted by: Guest_matt Nov 13 2004, 04:15 PM
i was wondering... if i have a house with a mortgage, since i have the title, can i sell this house to someone for cash and use the cash for my own personal use, while still paying off the mortgage.....

Posted by: loanuniverse Nov 13 2004, 06:32 PM
Well, I guess you could theoretically do something like that if you are selling the property for cash to someone foolish enough not to have an attorney on his side.

The first thing that the attorney would do will be to check the title and see what liens have been placed and then he will make sure to cut a check to the lender at closing, which means you will never even have that money in your hands.

Personally, I donít think this would be the right thing to do.

You could also use a¬†wraparound mortgage. However, you run the risk of the lender using the “due on sale” clause and demanding payment in full.

I think it would be best to avoid doing so as there are additional risks for buyer and seller.

 

 

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