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United Kingdom
Yes is generally the correct answer. Check with your lender for more details. It is possible to move a loan that is secured by a mortgage (or trust deed) to another property if the lender will approve the substitution of collateral. It is much more common when dealing with investor loans or in the UK. So, legally there is the possibility but practically most loans are paid off when the
property securing the loan is sold.
United States
In the United States the mortgage is paid off from the proceeds of the sale as part of the closing. That is one of the responsibilities of the attorney who represents the seller. Generally, mortgages contain a clause that allows the lender to demand immediate payment in full upon any change in ownership.
What else can I help you with?
Can you sell a house with a fixed mortgage in place?
Yes, you can sell a house with a fixed mortgage in place. The buyer can either take over the existing mortgage or pay it off in full at the time of the sale.
What happens to my mortgage when I sell my house?
When you sell your house, you will need to pay off your existing mortgage using the proceeds from the sale. If the sale price is higher than the remaining balance on your mortgage, you will keep the extra money. If the sale price is lower, you will need to come up with the difference to fully pay off the mortgage.
What happens when you die and leave a mortgaged house to someone?
They now have a house with a mortgage on it. If they cannot, or do not wish to, pay the mortgage, they will have to sell the house, pay off the mortgage, and keep the remainder of the money. The mortgage holder may require you to get a new mortgage on the property, rather than assume the existing loan. You are essentially leaving them what ever value you own of the house.
Can you transfer your home mortgage to your mother and get it out of your name?
Not without the consent of your lender, no. You could sell your house to her, but then your mortgage company would expect to be paid off; you can't sell her your house for less than you owe on it without making up the difference yourself.
If you are selling your house do you have to pay off your second mortgage or can you keep making payments?
When you sell your home all liens against the property have to be paid so you will have to pay off the second mortgage at the closing.
What kind of paperwork does the trustee need in order to sell the house after filing chapter 13?
Unless the house was owned free and clear by the debtor, the trustee does nothing. The mortgagee forecloses and auctions the house off. If there was no mortgage, the trustee will either sell the house or auction it off.
Should you pay off your house mortgage?
Yes, you should pay off you house mortgage because otherwise, you do not truly own your house.
Can you get a reverse mortgage and get the equity you have in it out even if your house is not paid for?
Yes, as long as you use the proceeds from the reverse mortage to pay off any existing mortgages.
You sell a house and can not pay off the mortgage will you be liable for the remaining dollars owed?
Well, you can't sell it if you can't pay off the loan against it. (You can't provide clear title to the buyer unless the liens are paid off at the closing and no new mortgage he needs can be put in first place of the existing one). Yes your responsible to pay off the loan in full. However, another arrangement (a short sale) may be able to be worked out with the lender. If your in bankruptcy there may yet be other alternatives.
Can you demolish a house that still has a mortgage on it?
Yes, a house with a mortgage can be demolished, but the mortgage would still need to be paid off even if the house is destroyed.
What if the estates debt is a mortgage?
The executor of the estate has the option of continuing to pay the mortgage and thereby continuing to own the property (which is presumably a house) or selling it. When you sell a house that has a mortgage, some of the purchase price will go to you, based on your equity in the house, and some will go to pay off the mortgage. If there is little equity in the house, or if the housing market is very depressed, you may realize little or no profit on the sale of the house, but you won't have to continue paying the mortgage.
Can you refinance your mortgage with a different lender?
Yes, you can refinance your mortgage with a different lender by applying for a new loan to pay off your existing mortgage.
