*The Commerce Journal>>>Renting & Real Estate

Do I have to pay off my mortgage right away if I sell the property that the mortgage was for?

I would like to keep the money in the bank for a couple of months to gain interest.

Yes, in order to sell the property all liens have to be paid off at closing. The attorney or title company will do this automatically at closing when they receive the new mortgage funds from the buyers lender, so you would not even have the option of holding onto the money.

The mortgage will be paid out of the sales proceeds at closing. There is no way for you to "keep" the money.

At closing, your mortgage obligations will be settled. The bank will not allow you to keep the mortgage without the security of the house as collateral.

By the way, the interest you would earn would be more than wiped out by the mortgage payments you would have to keep paying if the bank would let you do what your suggesting (which, they wouldn't of course).

Nice try though ;-)

Yes, when you sell the property the mortgage has to be paid off in full and the home is no longer yours. Any gains off the sale of the property you can place in CD; however if you do not invest the funds into another property, then the gains are taxed as that "gain income".

Talk to and follow your Tax or Attorney representative...

No buyer is gong to close without clear title to the home, the only way to get clear title is to pay of all liens

Would you buy a house that has and existing mortgage on it?

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