Home Equity Loan

[Bobhe]

Houston, Texas. We are thinking of taking out a home equity loan for loan consolidation, but due to a job change, we will be moving later this year. How does the equity loan affect the selling of the house? Can the balance of the loan at selling be taken from the equity from the sale? Anything else I need to know about?

Thanks,
Bob

 

[HomeGuru]

The sales proceeds would be used to pay the first mortgage and the home equity lender off to give the Buyer clear title.

 

[Bobhe]

Would the Home equity loan show up as a lein on the property? If so, would this deter prospective buyers?

 

[HomeGuru]

Yes, the loan would be recorded on title as a mortgage loan.
Should be no problem with a Buyer unless there is negative equity in the property.

 

[Bobhe]

Thanks!

 

[HomeGuru]

Good luck.