Selling when behind on payments

[patriotsgal]

What is the name of your state (only U.S. law)? MI. I am five months behind on my mtg. Modification process under way. Sitting on 56-60K of equity in house. Financial downfall due to manufacturing industry's chaos. Own small business, no real jobs to speak of. Would like to sell home to be able to utilize cash. Any rights to be able to do this?

[FlyingRon]

Nobody is going to buy a house unless the mortgage is satisfied. In a normal sale, this means that the actual amount owed is computed effective the day of the closing and the mortgagee is paid out off out of the closing funds.

In a short sale, it's more involved to negotiate what the mortgagee is willing to accept to release the security.

[nextwife]

Originally Posted by patriotsgal

What is the name of your state (only U.S. law)? MI. I am five months behind on my mtg. Modification process under way. Sitting on 56-60K of equity in house. Financial downfall due to manufacturing industry's chaos. Own small business, no real jobs to speak of. Would like to sell home to be able to utilize cash. Any rights to be able to do this?

Yes, if you act promptly, you can sell. Contact the lender for a total payoff. The delinquent payments, late fees, escrow shortfalls and any accrued legal costs will be added into the payoff. The longer you wait, the bigger the payoff gets. Most lenders will require any party who is well into default to arrange their payoffs through the lender's foreclosure attorneys. The foreclosure attorney for the lender can provide the title company what they'd need to clear title.

The default department can tell you who you need to get your payoff arranged through.