Kolar says she tries to get that information up front and divvies it out to the parties who need it for her clients.
“The day I meet the seller, I want a copy of their property survey, I want their statements on all their mortgages, I want any disclosures, any documentation, any inspections,” she says. “We’re going to need it at some point, so we might as well get it up front and not waste time later.”
To save yourself time and headaches, look for a real estate agent who wants to speed up the process and who can take care of as much documentation as possible on your behalf.
4. Work with a top agent
Especially if you’re selling your home with a second mortgage, you’ll want to lean on a real estate agent who has a proven sales track record. Remember, if you sell your house with a second mortgage, your sale needs to cover both of your mortgages plus all your selling expenses to make a profit.
Top real estate agents know how to list your home at a price that maximizes your returns. In fact, according to the National Association of Realtors®, 86% of recent buyers acquired their homes through the assistance of a real estate agent or broker, while 10% made direct purchases from the previous owner.
Ultimately, that means you could end up with a higher sale price to help you cover the balances on your outstanding mortgages.
If you want to locate a top agent who is an expert at selling in your area, try out the HomeLight Agent Finder platform. You’ll be matched with experienced agents who know how to sell homes in your location and can help maximize your home value when you sell.
5. When you sell a house with a second mortgage, pay off both mortgages
You do need to pay your second mortgage when you sell your home. When the deal closes, your home’s sale price should pay off both mortgages, plus selling expenses. As long as you’ve covered those costs, you’ll then be paid the amount of the remaining proceeds.
“It really should not make a difference how many mortgages you owe and what is owed, so long as you have the money to pay it off,” says Chris Baumann, the business development team leader at Socotra Capital and top loan originator in the San Francisco Bay area.
6. Know what to do if the sale does not cover your mortgage balances
After you do the math, you may find out you’re going to owe more money than you planned after the sale. Although it’s not the ideal choice to have to fork out more than you expected, you may still have options.
“The sales price must be able to pay off both mortgages in full, otherwise you will end up having to come to the settlement table with the difference or enter into a short sale agreement with one or both of the lien holders,” says Paul Swanson, residential mortgage financing expert.
