Financing in Portland>Question Details

Uytrcxv, Home Owner in Orange County, NY

i have a house with a FHA loan since 1989 and i want to pay off the balance in order to sell it, what is the proces?

Asked by Uytrcxv, Orange County, NY Tue May 10, 2011

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7
Manisha Jain, Broker, Realtor’s answer
I am assuming that you are planning to work with a Realtor to sell your house. Your Realtor should be able to explain you the process as well.

For home selling, the steps involved are: getting your house ready for sale, listing your house, finding a buyer, and then finally selling & closing your house. For purchasing your house, a buyer will have a financing option. Typically when a buyer comes to buy your house, the buyer will work with a mortgage company to get his/her loan. The buyer can also pay cash for purchasing. At time of closing, a closing agent will be involved who will help you with the process and during closing your FHA loan will be paid from money received from Buyer's lending institution. Any remaining equity will be paid back to you.

So coming back to your question, if I understand it correctly, you really don't need to pay off the balance in advance in order to sell your house. You can do it but there is no need to pay off loan in advance.

I hope it helps. Good luck!
Manisha Jain
http://manishajain.weebly.com
1 vote Thank Flag Link Wed Jun 1, 2011
I'm in agreeance with Gerard. Just pay it off at the closing table with the proceeds from it sale.
0 votes Thank Flag Link Wed Jun 15, 2011
I am in agreement with the others. Do you owe more on the home than current value? If not, then the loan can be paid off from the proceeds of the sale of the home. It is always your choice on what you wish to do, if you wish to pay it off early, then that is another option. I notice you are from NY, is the home in the Portland area? Do you currently have renters in it? I would love to help as much as I can, feel free to contact me if you want.
0 votes Thank Flag Link Wed Jun 15, 2011
Your Mortgage can be paid at closing as moneys from the sale are distributed. You need do anything but keep up to date on your mortgage until you go to closing!
0 votes Thank Flag Link Wed Jun 15, 2011
Unless you are underwater, why do you want to pay off the balance.

Call a fine Realtor on this board.

Perry
0 votes Thank Flag Link Tue May 10, 2011
In virtually all cases ou are not required to pay the balance before selling? They can pay off your mortgage at the closing on the HUD, they deduct your expenses of the sale and you receive any balance.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue May 10, 2011
Uytrcxv,
I would ask you why you want to pay the balance first and then sell it? Can you not sell it for more than the amount of the loan? If the sale price is higher than the loan amount still owed, you could sell it and have the balance of the loan paid off at closing. You would then receive the remainder (sold price - loan payoff = remainder) This way you do not need to come out of pocket for the balance up front. You can also talk to a local real estate agent/broker. They should be able to get you a CMA (Comparative Market Analysis) that will give you a very good idea as the to value of your home so you can make a better decision. Good Luck.
0 votes Thank Flag Link Tue May 10, 2011
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