Can You Stop Paying a Mortgage When Selling a House?
The answer to that question largely depends on how you sell your house. If you plan to do a traditional home sale, you will probably need to keep paying the mortgage until you find a buyer. The same is true for a For Sale by Owner. In either case, it can take several months for you to make the necessary repairs, list the house, and find a buyer.
However, if you decide to do a cash home sale, you may be able to sell your house fast to a company that buys houses. In most cases, you can probably close a cash sale before your next mortgage payment is due. A cash home sale typically takes seven to 21 days to complete. So, you don't have to worry about missing payments.
Why You Should Continue Paying Your Mortgage When Selling Your House
If you are selling your house the traditional way, there are several reasons you should continue paying your mortgage.
1. It Can Take Several Months to Sell Your House
Whether you hire a real estate agent or attempt an FSBO, selling your house on the market is a long process with several steps.
- Prepare the house for sale (repairs and staging).
- Schedule a home inspection.
- Hire a realtor and list the property.
- Show the house to multiple potential buyers.
- Find a buyer and negotiate the terms of the sale.
- Close the sale
The entire process can take several months. Making repairs can take 30 to 60 days. Finding a buyer can take another 60 to 90 days. Closing the sale can take 30 to 45 days. If you fail to make your mortgage payments, the bank may foreclose on your house before you find a buyer.
2. Stopping Mortgage Payments Can Hurt Your Credit
Considering the timeline and process we mentioned above, skipping your mortgage payments could affect your credit score and keep you from securing another mortgage loan soon.
Let's say it takes you 90 days to sell your house. During this time, you've missed three mortgage payments. Once your mortgage payment is 90 days late, your lender will send a demand letter. It states that your payments are late. The lender will begin foreclosure proceedings unless you start catching your payments up.
Also, during this time, your credit score is dropping exponentially. Even if you sell your house and pay the mortgage, it can take several months to clean up your credit. It can take even longer for your score to go back up.
A Cash Home Sale Can Help You Get Out of Your Mortgage
If you need to sell your house fast, but you can't find a buyer, or you want to avoid a traditional home sale, your best option is a cash home sale. You sell your house directly to a house-buying company. A cash home sale is simpler and requires fewer steps than a traditional one. It's much faster to complete.
In most cases, the buyer can close a cash home sale in as little as seven to 21 days. How is this possible?
- You make no home repairs or upgrades.
- You don't hire a realtor.
- You don't list your house on the market.
- A cash home sale is a private real estate transaction.
- The buyer is pre-qualified and already committed to buying the house.
- Closing takes only a few days.
There are several situations in which a cash home sale can help you relocate faster, get rid of a property, or get out of your mortgage.
- New Job
- Probate (inherited house)
- Damage or vacant house
- Rental house
Regardless of your situation, a local home buyer can pay cash for your house.
Get Out of Your Mortgage with a Cash Home Sale from Local Guy Buys Houses
If you need to sell your house fast and get out of your mortgage, contact Local Guy Buys Houses. We buy houses as-is. Let us assess your home's property and make a cash offer. You can close the sale of your house in as little as seven to 21 days.
Call 855-205-5999 to get a fast cash offer on your house.