What happens to money once house sold?

[EmmaMc]

We are in the process of selling our house and were wondering, if and when we do, what happens to the cash from the buyers? Does their bank pay into our mortgage account, or do we get the cash ourselves?

Hope I have explained myself, but we will probably end up in negative equity and if we could just keep paying our existing mortgage off with this cash, I guess it's the best loan we could get. We are going to rent once we sell.

 

[Complainer]

Your bank will have to agree to the sale beforehand, as they hold the deeds. If they do agree, your solicitor will give the money to the bank, to go towards your mortgage, and you will need to make some arrangement with them about the outstanding debt.

 

[roro123]

The bank won't allow you to hold a mortgage with no security. They'll clear what they can and pursue you for the rest.

 

[mf1]

Complainer has it nailed.

It is terribly important that you work out your figures. You say that "we will probably end up in negative equity". That is not good enough. You absolutely need to know how much money is due to your lender. If the sum due to them exceeds the sum you can sell for, then, unless your bank agree to release your deeds you cannot, cannot just sell without their knowledge.

Your solicitor will need to know the sum due to the lender so that they can quite clearly know whether or not they can even issue contracts, let alone have you confirm that the property will be sold with your mortgage debt clear to be freed off the title.


mf