This is only feasible if you have the extra cash available and you can’t sell later when the market is better.
Request a short sale: If you need to move and owe more than your home is worth, you might consider a short sale. A short sale is when the lender agrees to reduce the balance you owe on the home to help you sell. Lenders are more likely to allow a short sale if they fear you’ll foreclose on the home, so you’ll have to prove hardship to get it approved.
Short sales are usually priced below market value to ensure a quick sale, and your lender may require an all-cash offer so they can get out of the investment as quickly as possible. In some instances, lenders will require a promissory note, which means you agree to keep making at least partial payments against the debt after the sale has closed. Note that if you sell your home with a short sale, it can negatively affect your credit score and limit your ability to buy another home in the near future.
You are the owner of the home until the day the sale closes, which means you’re responsible for your mortgage payments during this time. The average period of time between accepting an offer and closing on a home is 30-45 days, although buyers sometimes request shorter or longer closing periods. Occasionally (and depending on where your last mortgage payment before closing falls in relation to the closing date), your settlement statement might dictate that the final mortgage payment be paid at closing.
All of your questions related to which party pays for which expenses can be found in your settlement statement, which is also known as a closing statement. Read More