How to Sell Your House with a Canceled Mortgage

When selling your home, it’s not just the house itself that you’re selling; you are also selling any debt associated with it. While some mortgage lenders will cancel this obligation for you, finding a buyer who will assume this responsibility is key. Here are ways to guarantee that your house will sell even after the mortgage has been cancelled.

  1. Make Your House Presentable

It should go without saying, but you want your home to look attractive to potential buyers. Take out clutter and maintain the property properly. Additionally, ensure you have a clear title on the property. Find out about our project management by visiting:

  1. Clean Up the Credit

First and foremost, ensure you have at least a three-month payment history on all bills. Without one, lenders or prospective buyers may be able to access your credit report to find out. Credit issues will make it harder for either lender or buyer to purchase your house.

  1. Clear Away Any Liens

A lien is a claim against your property by another person, such as an unpaid bill. If there are any liens placed against it, potential buyers may not be able to purchase it since they must first pay off the lien before receiving title.

  1. Eliminate Any Negative Equity

Negative equity refers to when your mortgage balance exceeds the value of your home. Lenders will take note of this and may find it difficult to sell your house due to this. Make sure all outstanding debt has been cleared so potential buyers aren’t scared away by your financial situation.

  1. Make Sure You Have Appropriate Insurance

Every house should have comprehensive homeowner’s and renter’s coverage, but finding someone to take on that responsibility can be challenging. You would be amazed how many potential buyers will walk away from a property if they do not feel secure enough in it. It is essential that all parties involved have adequate protection.

  1. Get Paid

Be sure all costs, including legal fees, have been covered. Ideally, keep these low when listing your home – either negotiate with potential buyers or use a discount to guarantee they take on responsibility for payment.

  1. Price Correctly

It is essential to price your home according to market value rather than what you think it’s worth (i.e. the true market value). When selling your house, potential buyers often ask for a lower sales price than what the house actually worth; you can make more money by selling for up to 10% below its actual worth.