Steps to sell realestate?

Question

A neighbor is thinking about selling his property , he still owes on a loan . I told him, he needs to ask the lender for permission to sale before he does anything .

Answer 1

Maybe, maybe not.  Tell your neighbor to check his Note (and any addenda to the Note).

If there is a no prepayment penalty, then your neighbor can sell anytime he desires, with no financial hit.

If there is a prepayment penalty clause in the note, when does it end?  Most prepayment penalties recently have been 2 or 3 years long.  After that, again, there is no financial penalty for selling or refinancing.  If there is still a prepayment penalty in force when your friend sells his home, then there will be a financial penalty, albeit one that is manageable for most people.

In either scenario, your friend does not need the lender's permission to sell his home.

Answer 2

In the United States you can sell a house and pay off any existing loan at closing.  This is done all the time.  There are a few loans that charge penalties for paying off early- I hope that is made illegal- but right now it is legal.

Answer 3

He does not need lender permission.

He needs to contact a real estate sales person who will walk him through the process.

Answer 4

Your neighbor does not need permission to sell his house nor does he need permission from his lender.

A pre-payment penalty is normally used for a refinance not selling a property. Lenders can not prevent you from selling your property.

Anything might come up such as a job transfer, family emergency, an increase in your family. These things prevent a lender from adding a penalty for the sell of your home.

They can expect a reasonable time on mortgage so they will normally have a prepayment penalty if you decide to refinance. There is no reason for you to refinance other than your rate thus lowering your payment. This is not considered an emergency.

I hope this has been of some use to you, good luck.

"FIGHT ON"