Can you sell your home if you have a loan secured on it, if you intend to pay it off at the end of the sale?
Yes, you can sell your home if it is secured by a mortgage. A mortgage, or home loan, is a lien against the title of the home. Theoretically, that means that if you ever sell, or refinance, your current home then the mortgage loan will be paid off.
Practically speaking, what happens when you sell your home is that the proceeds will actually be paid out of an Â“escrowÂ” account, or a short-term account that is used to pay off liens against the title. This usually happens at the closing. Any proceeds left over, after paying off liens and fees and closing costs, will then be transferred to your bank account (hopefully you make money on the home sales!)
In order to insure that the title is Â‘cleanÂ’ Â– a title insurance company will usually come in at closing and certify that everything is paid off before you get your proceeds.
I hope that his helps you make the right decision for your particular situation, and thanks for asking Bill for help!
I hope this information helps you Find. Learn & Save.