A lot of times, a person wants to sell their home but they are worried that they won’t be able to because they have not yet paid off the mortgage. However, you are in fact allowed to sell your house before the mortgage is paid off because your mortgage will get paid off from your seller’s proceeds.
Basically, you have your sales price and from your sales price you will have deducted your real estate commissions, your realty transfer fee, and your mortgage or mortgages. You have to remember that also a line of credit is a lien against the house so it’s also considered as a second mortgage or an additional mortgage, and you may have construction loan mortgages also that need to get paid off. For example, if you had windows or a roof put in on the house, those would be additional mortgages that could be liens against your house.
Those will all get paid at closing from your proceeds and after the bank receives your money or the lender receives your money they will issue what is called a discharge of mortgage and will send it directly to the County Clerk for recording and you should receive a confirmation copy from your lender that your balance is paid in full. Usually that takes up to 30 days after the closing to process.
If you have any questions or concerns about selling your house in regards to your mortgage payments, it is important to seek legal counsel from an experienced attorney who can assist you in determining what the next steps are.
Juan C. Velasco, Esq. is a trusted attorney who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.