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Selling a home

Selling a home

mncwattersjr's avatar User  mncwattersjr  (Opens a pop up layer) Contributor

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!

Re: Selling a home

USAA Social Service's avatar User  USAA Social Service USAA Service

mncwattersjr,

 

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

Re: Selling a home

mxreeds's avatar User  mxreeds  (Opens a pop up layer) Frequent Contributor

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.

Re: Selling a home

Beverrlly's avatar User  Beverrlly  (Opens a pop up layer) Contributor

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.

Re: Selling a home

USAA Social Service's avatar User  USAA Social Service USAA Service

Beverrily,

 

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

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