I apologize for my newbie question, but must ask.  I have been watching the value of my home on USAA Home monitor.  I see that the "estimate" has been fluctuating about $15,000 above or below and it got me thinking... If i decide to move and my home sells for less than i paid...  Im assuming i would owe the bank the difference...  that being the difference considering what i sold it for and what i have vested.  (we had 100% financing)  is this correct?


thanks in advance!




Thank you for reaching out in Member Community. You are correct, before ownership of the home can be transferred from one person to another, any and all liens (mortgage loans) must be paid in full. This means, if your home sold for less than the balance of your mortgage loan, you would be required to pay the different before the sale of the home could be completed.


If you are considering the sale of your home, USAA can assist with the referral of a real estate agent through our USAA Real Estate Rewards program. To find out more about this program, please contact us at 210-531-USAA (8722). Thank you. -Gus

note that you would only owe if it sold for less than you still owe on it, so if you paid x and still owe y, and it sells for z, you are only on the hook if z < y. if y < z < x you don't owe.

The exact situation you are referring to is what people mean when they say they are "underwater" on their mortgage.  If you owe more than you can sell the house for, you are "underwater."  Not an ideal situation to be in!  Your best bet if you are underwater is to hold onto the house until either market prices improve in your area or you have built up enough equity to sell the house and pay off the loan.



Thank you for engaging in the conversation and providing advice.  If you are considering a mortgage with USAA and have more questions, we can provide assistance.  Please contact us at 210-531-USAA (8722). Thank you. -Celeste

Technically, yes, but don't trust that "Home Value Monitoring" - it's worthless.


For instance, where I live the housing market is on fire.  That HVM thing had me listed at about $193k a month ago.  In the meantime, the house 2 doors down from me (smaller square footage, but still a 4/2) sold for $203k.  30 days later, the USAA HVM told me my value had dropped to $178k.  Ridiculous, I'm getting called by the same realtors that sold the house for $203k asking if I want to list mine at about $205k (went to the open house and asked for a market analysis).


If you really want to get a true value, ask a realtor for a market analysis and appraisal.  Don't rely on the USAA Home Value Monitoring or Zillow or anything like that, they're inaccurate, more often than not.