As an Investor, and Real Estate Broker with over 23 years experience, I hear a ton of questions about selling a home fast in Tucson and mortgages. “Can you sell a house if you are behind on payments?” is a common one! The answer isn’t always an easy “Yes or no” type of answer!
There are many factors that play into whether or not you can sell your house if you are behind on payments. Your equity position, how many payments you’ve missed, and your loan status all play into this question. However, in today’s article, I would like to try to attempt to answer this question as well as three other related questions.
Hopefully by answering these questions, I will help give you a better idea of what you can do in your particular situation!
“Can I Sell My House If I Still Owe The Bank?”
Generally speaking, the answer is yes. However, complications come when you have a large loan amount left. If you are current with your payments, you simply sell the home for more that what you owe, and the Title company will pay off your mortgage at closing.
If you are behind on your payments on your property in the Tucson area, then the complications begin. It is important to understand that the Mortage company does not want your property back! After 23 years as a Real estate Broker selling REO properties, I can assure you they will work with you!
Depending on your situation, you may qualify for a short sale. A short sale is simply selling the property for less than the value of the mortgage. In order to do this, the house must be worth less than the home’s mortgage is.
There are several qualifications in order to do a short sale, but the good news is, that a person who owes too much on a home that isn’t worth it; can sell it for less, and receive forgiveness for any unpaid amount in most cases. Because Arizona is called a “non deficiency State”, lenders cannot pursue you personally for mortgage debt on personal property from a short sale. (Check with your attorney for your situation!)
“Do I Have To Pay My Mortgage If I Am Selling My House?”
Assuming that your home is on the market, then yes.. you have to continue paying your mortgage while you are selling your house. Obviously, if you are behind on your payments, then this isn’t an option. However, if you are cash strapped, and your property is under contract, and you are trying to figure out how to “rob Peter to pay Paul”, then this question comes up!
In order to accurately answer this question, let me state for legal reasons that you should always make your mortgage payments on time, every time.
However, I recognize that sometimes things come up, so this is how it works when you close!
At closing, Escrow will get is called an “Escrow payoff” from your lender. This will tell them exactly how much money you owe them at closing. If you make a payment prior to closing, any amount of overage will be sent back to you by your lender.
Additionally, remember that you will be getting a check back from your lender for any amount of money left in your escrow account.. if any!
“How Many Months Can You Not Pay Before Foreclosure?”
Sometimes, when people are behind on payments in their Tucson homes, they wonder how many months can you not pay before they start to foreclose?
As I mentioned before, the bank does not want your home back. They are in the lending business, not the real estate business. Although their note with you allows them to legally begin foreclosure proceedings on the first day, they rarely do. It is in their best interest to keep you paying.
So how long can you go before the problems come? Typically, if a property is 90 days behind in mortgage payments, then the lender will begin foreclosure proceedings by giving notice to the Owner, with a Trustee’s Sale scheduled 90 days later.
In Pima County, and Arizona; the majority of properties are sold using a “trustee’s deed” which enables a foreclosure after 90 days after official notification. This is important because the speed at which a home can be foreclosed on in Tucson without recourse is faster than many other areas of the country.
Behind On Payments In Tucson?
Do you have a property that you are behind on payments on in Tucson? You aren’t alone… I meet people from all walks of life who are working multiple jobs to maintain properties that they just don’t need anymore.
Eliminate your unnecessary stress and maybe even cut one of those extra jobs you have! Call me today for a fair, fast offer for your unwanted home!
Call me at (520) 403-6227 or use the form below to tell me about your situation! With over 20 years working with Banks, Tucson homeowners, and Sellers, I can offer you some insight and options that will help!