Sell house with HELOC balance not paid off?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Sell house with HELOC balance not paid off?

My ex-husband and I own a home which he resides in; we are both on the title of the house. We have 2 mortgages on the house; the first is solely in his name and the second is solely in my name; they total $265,000. We probably could get $225,000 for the house if sold now. How would the 2nd mortgage HELOC handle the difference to be paid?

Asked on August 23, 2017 under Real Estate Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

You can't transfer clean title unless you pay off the loan, which comes due when you sell the home; nobody will insure title if you can't clear the loan, so it's highly unlike you can sell, since buyers will not buy, and their lender not extend a loan, without clean title. Even if it slipped through the cracks and a sale went through, the 2nd HELOC lender could then foreclose if the loan is not paid and the buyer would sue you.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption