Sell house with HELOC balance not paid off?
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Sell house with HELOC balance not paid off?
My ex-husband and I own a home which he resides in; we are both on the title of the house. We have 2 mortgages on the house; the first is solely in his name and the second is solely in my name; they total $265,000. We probably could get $225,000 for the house if sold now. How would the 2nd mortgage HELOC handle the difference to be paid?
Asked on August 23, 2017 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
You can't transfer clean title unless you pay off the loan, which comes due when you sell the home; nobody will insure title if you can't clear the loan, so it's highly unlike you can sell, since buyers will not buy, and their lender not extend a loan, without clean title. Even if it slipped through the cracks and a sale went through, the 2nd HELOC lender could then foreclose if the loan is not paid and the buyer would sue you.
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