Equity Home Loans

Do you still make mortgage payments while your home is on the market to sell?

My friend was selling his house and couldn't make the mortgage payments while the house was on the market. He said the real estate agent/company would pay his mortgage while it was up for sale. Then when the house sold, they deducted it from the price of the sale. How is this done? Also, if you don't make any mortgage payments while the house is on the market can it go into foreclosure?

Public Comments

1. YES YOU DO OR ITS A SCAM
2. This is a UK answer but I assume it's the same in the USA. When the house is sold, the lawyers contact the mortgage company to find out what is owing (the redemption figure) on the day of sale. They then look at what the house sold for and take off what is owed plus their costs and the agents costs and send the rest of the money. The paper that sets all this out is called a completion certificate.
3. the real estate agent "loaned " your friend money to make mortgage payments while the house was on the market,or during the closing period,,these payments were rightfully deducted from the net profit,if any,from the sale
4. Foolishness! The back mortgage payments plus penalties and interest will be paid at closing all right, but out of his pocket not out of the real estate company commission! The property had to sell for enough to satisfy all the liens against it including the mortgage. Your friend does not have a clue as to how things work. If the property did not have enough equity he would have had to pay money at closing or not be able to sell at all!
5. If you can get the real estate company to do this then your luck is great! Therewere a few that would do this, but with the economy being the way it is right now, I don't think you'll find any agency that would do this, it would be very bad risky business.......
6. You would have to have a specific agreement with the realtor (written agreement). But remember ultimately you are responsible for the mortgage and your credit is at risk if you default.
7. zapata's answer is the correct answer, couldn't have stated it any better myself. If you ever do this, there WILL be a contract just in case the house doesn't sell, you would owe the money to the broker [with interest].
8. Yes you do still make the payments, don't rely on what the real estate agents says. If the house doesn't sell then here comes foreclosure city!