Frequently Asked Questions
The Most Trusted Cash Home Buyer in Virginia, Maryland, and DC.
What Happens to My Mortgage When I Sell My House for Cash?
You do not have to pay off the mortgage before closing. The title company pays the lender from the buyer's funds on closing day, and you receive whatever is left after the loan payoff and normal closing items.
Do I need to bring the loan current first?
No, you don’t. Disclose the mortgage and any late payments up front so the title company can order a payoff statement from your lender.
Who handles the payoff?
The title company running the closing. They request an official payoff quote good through the closing date, send the funds to your lender, and record the release.
What if I am behind on payments or in foreclosure?
A cash sale can still work if there is enough value to pay the lender and close. Timing matters, so tell us the sale date and any foreclosure date immediately.
What if I owe more than the house will sell for?
That is an underwater or short-sale situation. It may require lender approval but you can often sell without owing anything on the shortfall. I know it may seem too good to be true but it’s not.
What happens to my escrow account?
After the loan is paid off, any leftover money your lender held for taxes and insurance is refunded to you by the lender. That refund is separate from the check you get at closing.
Does a cash sale change how the mortgage is paid off?
The payoff process is the same as any sale. The difference is speed. There is no buyer loan underwriting, so closing can happen in weeks instead of months.
This is general information, not tax or legal advice.
Video Transcript
What happens to my mortgage when I sell my house for cash? You do not have to pay off the mortgage before closing. The title company pays the lender from the buyer's funds on closing day, and you receive whatever is left after the loan payoff and normal closing items.
Do I need to bring the loan current first? No, you don't. Disclose the mortgage and any late payments up front so the title company can order a payoff statement from your lender.
Who handles the payoff? The title company running the closing. They request an official payoff quote good through the closing date, send the funds to your lender, and record the release.
What if I am behind on payments or in foreclosure? A cash sale can still work if there is enough value to pay the lender and close. Timing matters, so tell us the sale date and any foreclosure date immediately.
What if I owe more than the house will sell for? That is an underwater or short-sale situation. It may require lender approval but you can often sell without owing anything on the shortfall. I know it may seem too good to be true but it's not.
What happens to my escrow account? After the loan is paid off, any leftover money your lender held for taxes and insurance is refunded to you by the lender. That refund is separate from the check you get at closing.
Does a cash sale change how the mortgage is paid off? The payoff process is the same as any sale. The difference is speed. There is no buyer loan underwriting, so closing can happen in weeks instead of months.
If you have a mortgage and want a no-obligation cash offer, request one at Express Home Buyers dot com and tell us the loan status up front.