Our house is on the market for WAY less than we bought it for 6yrs ago. Is it possible to sell for less than we owe but continue to pay the rest?

Asked by Rich, 01776 Wed Jun 22, 2011

We can afford payments but we are supposed to have moved by now and the house is not moving at the listed price which is 40g less than what we paid. We dont want a short sale because of great credit. There is no way we could come up with the difference at closing but to pay the rest off isnt a problem. Would bank do this so we could avoid a "real" shortsale or are we just screwed?

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Lew Corcoran, Agent, Easton, MA
Wed Jun 22, 2011
The short answer is yes, it is possible to sell your home for less than the mortgage balance and pay the remaining balance over time. You will have to sign a promissory note at settlement for the difference between the selling price or net proceeds and the balance remaining on your mortgage.

You'll also want to make sure that your credit is not 'dinged' by this arrangment. You should speak with a real estate attorney who is experienced in handling distressed property sales to make sure you're protected.
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