What happens if I sell a house and I'm in the negative after all fees and comissions have been paid?
Saturday, 14. August 2010
I’m trying to sell a house. I have two loans:
Mortgage 1: owe 9,000
Home Equity Loan: owe ,000
Total loans: 8,000
I bought the house two years ago for 5,000. I currently have an offer on the house for 9,000. I would end up with ,000 profit. BUT after paying comissions, taxes, closing costs, etc., it looks like I will end up -00 in the red. What do people do in this situation? Who do I have to pay first, the lender or the real estate agent? What kind of loan would I need to take out to cover my rear??
godged Says:
You have to pay everyone at closing. If you will have to obtain a personal loan since you won’t have property to secure the loan.
src50 Says:
You have to ante up the shortfall.
Scott Says:
You would actually have to show up at closing with the money you owe to sell the home to the new owner. In this kind of a situation you have little choice but to raise the money before you goto closing. Occasionally people who are in a bad financial situation and facing foreclosure can negotiate a short sale where the bank agrees to take less money for the home than is owed, but it does not sound like you would qualify for this unless they are starting foreclure proceding on you already. Credit cards, family, friends would be my recommendations on where to get the money, but you do not get to shoose who to pay, your title company does this for you and requires all nessesary funds be present at closing.
bigdaddy9965 Says:
you have to write a ck out of your pocket
65% water Says:
"Who do I have to pay first, the lender or the real estate agent?" All of the fees are paid at closing.
"What kind of loan would I need to take out to cover my rear??" You’ll have to see if anyone will give you a loan, but without another property to secure it on, you’d better have some significant assets somewhere else.
You always need to count closing costs, etc. as part of the price of selling any house.
Real Estate Guy Says:
You write a check at closing.
THIS IS THE REASON NOT TO TAP YOUR EQUITY.