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ANSWERS: 1
  • Absolutely, any line of credit on your home is almost like having a second mortgage. You will have to pay off your original mortgage, any loan that is tied to the home as collateral, any possibl liens if you have any, and finally if you have a second mortgage or third, they all must be paid so as that the new owner will have a clear Title. That is why in home purchases the buyer gets a Title Exam and search along with a Title Owners Insurance Policy for the sale price of the home. This guarantees the buyer that your home is free and clear of any lines of credit, 2nd. mortgages, someone suing you and your home is involved and a host of other possibilities. The quickest way to sell your home is if the buyer has all cash. If not then a Conventional Mortgage followed by the king of paperwork and documentation, the FHA loan. If they are persuing a FHA loan my advise is to get an attorney otherwise any licensed Title Co. can close your home for about $300. closing cost. That does not include Doc. stamps, insurance, taxes, survey/recent, credit report, filing of paperwork at Clerk of County office and other things, good luck.

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