House as loan security for sale?

freddieD

I have applied for a secured loan and they asked me if my house was for sale. Does this mean they will not give you the loan if the house is for sale or do they just need to know for their records? If you sell the house you have money to pay them.

MEM62

If you sell the house their security is gone!

jonesMUFCforever

MEM62 wrote: »

If you sell the house their security is gone!

If they do their job right they will ensure sufficient equity to cover their loan plus register the charge on the property BEFORE they release the money.
They are then safeguarded.

TadleyBaggie

freddieD wrote: »

f you sell the house you have money to pay them.

Not always, depends on how much you owe on the mortgage and what the selling price is.

freddieD

TadleyBaggie wrote: »

Not always, depends on how much you owe on the mortgage and what the selling price is.

I was not talking about always, only my own situation. There is plenty to pay them the loan and their rip-off fees.

scaredlady

freddieD wrote: »

I was not talking about always, only my own situation. There is plenty to pay them the loan and their rip-off fees.

So if they have rip off fees why are you using them.
Find some one who does not charge rip off fees.
Or is it that the only lender who will agree charges a higher rate of interest.

TadleyBaggie

freddieD wrote: »

I was not talking about always, only my own situation. There is plenty to pay them the loan and their rip-off fees.

The way you worded made it sound generic:

If you sell the house you have money to pay them.

If you had said "If I sell the house I will have money to pay them" it would have been clearer what you were trying to say.