Many reasons can make us need to move from our home: the growth of the family, work in another city, business opportunities or simply because we want to move to a new home. According to the US Census Bureau, the average American moves about 11 times during his or her lifetime, for thousands of reasons, regardless of age, race, geographic area or other variables. The reasons can vary a lot among people, what seems to be constant is the doubt if it is possible to sell the house with a mortgage. At Bull Mortgage , we are constantly being asked if it is possible to sell a property when we still have an open mortgage loan with a financial institution. Our answer is: Yes, it is possible. However, this is a delicate operation that must be done in the right way so as not to lose money on the way, affect the credit score or even contravene any clause of the mortgage contract.

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Steps to Sell Homes with Mortgage Credit 1. Get Information The first thing we should do is go to our lender and check the actual balance of our mortgage credit, the outstanding fees and the cost of advancing the mortgage payment. After that, we must inform ourselves with our real estate agent about the sale options, prices, commissions and payment modalities, in order to program all the financial aspects related to the convenience of the sale. 2.

Evaluate the sales options In certain cases, in depressed markets, selling the house against the payment of the mortgage can mean a loss of money, in other cases we could benefit from the operation. These options should be weighed with an expert mortgage advisor such as Bull Mortgage . There are different types of sales:

● The simple sale: It is the ideal option, the sale of house with mortgage credits, it is enough to pay the remaining balance of the debt and even, to obtain a profit.

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● Short Sale: The value of the property is less than the mortgage. We must notify the creditor financial entity about the operation, which may reduce the outstanding amount of the credit in order to accelerate the sale process and pay off a significant part of the mortgage. The remaining balance is considered a loss from the operation and the Bank will issue the IRS 1099 form in the name of the debtor to report it in its tax return as income. The best option before thinking about selling a house with a mortgage loan is to turn to financial experts like Bull Mortgage , who will gladly assist you in any purchase/sale transaction of real estate and mortgages.