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September 27, 2020
6:13 pm
Jamesk
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September 27, 2020
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I'm having a hard time figuring out the following situation

I sold my house for 312000. I have a mortgage of 145000.

I think I can transfer my mortgage to the new property I just bought. The new property cost is 125,000. So I have 2 options

1) take the existing mortgage and transfer it to the new property. Receive the 312,000 then pay off the mortgage leaving me with 167,000 in my pocket and no mortgage.

2) Receive the 312,000 and pay off the 145,000 mortgage, leaving 167,000. The buy the new property for 125,000 leaving 43,000 in my pocket.

I meet with the bank tomorrow. Do I not understand mortgage transfers or is there a way for me to "lose" 125,000$ by not doing things in the proper sequence?

September 27, 2020
9:49 pm
Norman1
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The buyer won't release the $312,000 to you without the bank agreeing to discharge the $145,000 lien on the property.

The bank won't discharge the $145,000 lien without coming to some kind of agreement with someone about the $145,000 and any early discharge penalties.

September 28, 2020
4:38 am
Kidd
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September 28, 2020
4:42 am
Bill
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Jamesk, in your first scenario the seller of your new property stii wants her $125k, pay her and then you end up with the same $43k as in your 2nd scenario.

September 30, 2020
1:17 am
Rick
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Too hard to make a decision without all the facts on the mortgage. Without knowing term/rate/time remaining and penalty, Id say transfer the mortgage and bank the cash. My 2 cents FWIW

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