Having Problems With Your Mortgage And Thinking Of Selling Your House?

23 Aug Having Problems With Your Mortgage And Thinking Of Selling Your House?

If you are having problems making your mortgage payments, you might be thinking of selling your house. It is important to understand a few things about listing and selling a house if you are considering doing so.

The most important thing to know about selling real property (land, houses, condos or anything with a Deed) is that you probably can’t sell it if you aren’t able to pay off any/all liens on the property such as mortgages, equity lines, and other liens such as tax liens or judgment liens.

Sometimes people are not aware of all the liens against the property until they have signed a contract for sale. It is advisable to check your credit report and you might also go to the court to see if there are any judgments or liens recorded against your property that you don’t know about before you put your property up for sale.

You may sell it yourself, or you may sign a listing agreement with a Realtor. The listing agreement is a binding contract with a realtor that says that if an offer for sale is presented to you for the price you ask, the Realtor has earned their commission. You do not have to accept any offer, but if you change your mind and refuse a full price offer, you may owe the Realtor money.

Never sign a contract that you can’t fulfill. Don’t sign a listing agreement that lists your house for less than what you owe on the house because you might owe the commission for the listing Realtor who helped bring you the offer. If you owe more on your mortgage than your house is worth, you may have trouble selling it. Since you don’t have a legal right to sell without clearing the liens, don’t enter into a sales contract for less than what is owed on the house.

You should not accept an offer for sale for less than the payoff of all liens before you are absolutely sure you are able to be able to finish the sale or you might open yourself up to legal liability for not being able to comply with the contract for sale.

In some cases, you might be able to sell it if you can’t pay off all the liens (short sale), but you can only do that with the permission and cooperation of the lien holder. But beware of short sales. BLN contributor Kent Anderson points out, “A residential short sale can be a trap.”

Finally, not everyone who is thinking of selling their house really wants to sell. Sometimes people sell their property because they think that is the only option they have. However bankruptcy might help someone keep their house.

Chapter 7 bankruptcy can often eliminate unsecured debts like credit cards so the money coming in can go to keep up the house. Chapter 7 can often stop a foreclosure, at least for a while. It might give you a little time to sell your house. You can also stop the foreclosure process by filing Chapter 13 bankruptcy. Chapter 13 bankruptcy can eliminate or reduce unsecured debts which frees up money to pay mortgage payments, but also gives people time to catch up missed mortgage payments through a court supervised repayment plan.

For more information about bankruptcy and whether or not it can help you, see an experienced bankruptcy attorney near you.

by Susanne Robicsek Charlotte NC Bankruptcy Lawer

See also:

When Do I Need To Leave My House If I Am In Foreclosure? May 23, 2008 by Susanne Robicsek Charlotte NC Bankruptcy Lawer

Using Chapter 7 to Stop a Mortgage Foreclosure August 22, 2008 by Craig Andresen, MN Bankruptcy Lawyer

When Foreclosure Can’t Be Stopped by Bankruptcy August 22, 2008 by Eugene Melchionne

What Is A Short Sale Jan 5, 2008 by Karen Oakes, Oregon Bankruptcy Lawyer

I Got A Foreclosure Notice–How Long Do I Have Before I Have To Leave My Home? May 24, 2008 by Karen Oakes, Oregon Bankruptcy Lawyer

Short Sale: Pitfalls And Problems August 1, 2008 by Brett Weiss, MD Bankruptcy Lawyer

Should I Try A Short Sale Of My Home If I’m Filing Bankruptcy Anyway? February 5, 2008 by Chip Parker Jacksonville FL Bankruptcy Lawyer

Foreclosure Sale May Not End Financial Liability June 10, 2008 by Jonathan Ginsberg, Atlanta Bankruptcy Lawyer


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Concentrating in Consumer Bankruptcy Law since 1988; Wake Forest Law School JD 1987 Law Office of Susanne M. Robicsek since 1993, Law Clerk to Judge Rufus Reynolds, US Bankruptcy Judge for Middle District of NC; Burns Price & Arneke, PA, David Badger and Associates, PA.

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