Selling a Brantford house after a loan modification
You may know that there was no standard procedure when it came to loan modifications. That applied to both the application and approval process and to the way the modifications were structured.
If you got a modification, you may have had your interest rate reduced, you may have had some of the principal balance forgiven, or you may have had part of the principal balance temporarily set aside – to be due and payable when you sold the house, or if you sold the house before a specified number of years.
Do you know the precise terms of your loan modification? If not, it’s time to get that paperwork out and go over it carefully. If you’re not sure what is meant by what it says, take it to a real estate attorney.
In addition, purchase a preliminary title report. This is not the title insurance that you’ll purchase to protect your buyers at closing, but a report that will alert you to any and all liens against your house.
Failure to do this research before selling could cost you thousands of dollars in equity you thought you had. Just think how sick you’d feel if you closed on the sale of your house just a few months – or even days – short of the date on which that debt really would have been forgiven.
If you’ve had a loan modification and are thinking of selling your Brantford home, call a Sutton Team Realty Brantford Realtor. We’ll be glad to prepare a current market analysis, so you’ll know your home’s value in today’s marketplace. We’ll also be happy to give you the names of real estate attorneys who have helped our clients in the past.
It really isn’t safe to go forward with a sale until you know exactly where you stand.