Selling for less than owed (sale, fees, price, property)

[tagylyn]

If you were to sell your house and after all closing costs, realtor fees, etc... and the seller came out owing money around $2 - 5000.00.
What if the seller does not have the money?
What happens?
Is the deal/contract null and void?
Can the seller make payments?

[tamitrail]

No, you can't make payments. If you were to sell your property, the loan needs to be paid off or you can't close.

[DMenscha]

You would need to arrange something with your lender. This is the classic definition of a short sale.

[tagylyn]

I am good on my payments, I have my house on the market now and I have offered some closing assistance with full asking price.
I am playing with numbers to get an idea of what I can and cannot do knowing that the economy is in a rut and alot of buyers are low balling.

[palmcoasting]

Call your lender. They may very well take a loan back for the amount, especially because it's so little. Always speak with your lender. Call the loan mitigation department, explain the situation and ask what programs they are offering. You may also qualify with your own bank for a personal loan.

[carolina chick]

Yes, call your bank and talk about a personal loan. When a relative was selling, that's what she did and it worked out very well for her.

[Michelle Morris]

I had a guy who really needed out of his house sell his Harley to cover the difference.

[tamitrail]

I would not take out a personal loan on a house that you want out of. The interest rates will be high and you'll end up paying way more than you really owe. I don't see how if the OP doesn't have $2000 to $5000 they will be approved for a loan.

[palmcoasting]

Which is why they should call their bank and ask. While you may not wish to take that route, it may be in the OP's best interest to facillitate a sale and not have their credit affected.