Profile picture for nscarlson

Can I sell my house for less than the mortgage amount and continue to pay the mortgage?

I'd like to get the title transferred to someone else.  They don't have the money for a mortgage loan.  I would like to sell them the house for a nominal amount and continue to pay my mortgage.  Can this be done?  Thanks.
  • May 12 2011 - Evansville
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Answers (3)

Profile picture for BartMedlock
Bob hit it on the head. You can't sell it/transfer title without satisfying the mortgage. You should talk to a real estate attorney about structuring a lease/option but be aware - even though people do it all the time and the banks don't seem to enforce it - your mortgage probably has language requiring you to maintain the home as your primary residence.

If you really want to get out from under it - assuming you would qualify - your other option is doing a short sale. Look for an agent who is a Certified Distressed Property Expert, call that agent and ask how many short sales they have successfully closed as a listing agent.

Good luck.
  • May 12 2011
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What you are describing appears to be what is termed a wrap around loan and upon changing title, your current lender will require your loan paid in full. Your best best would be a lease option which is generally structured with an option fee and premium rents and an execution date. Google "residential lease option structure" and you should find some good examples. Cheers! Kevin & Naomi Kieffer East Bay (northern California).

  • May 12 2011
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Mortgages have a due on sale clause. You could rent them the house. Ask your lawyer to review the mortgage papers and ask him how it could be assumed by someone else.
  • May 12 2011
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