When your selling your home, do you still have too your mortgage?

No. Usually people sell their house for more than they owe on the mortgage. At the closing when the sale of the home is finalized, the closing company allocates the money paid for the house by first paying off your mortgage loan, then paying closing costs and realtor commissions, and finally, you (the seller) get a check for what is left.

These days a lot of people owe more than they can sell their house for so either do a short sale or foreclosure if they cannot afford to pay their mortgage.

In a short sale, the bank agrees to allow you to sell the house for less than you owe for the mortgage. The realtor is still paid and the closing costs from the money you get for the house, but all the rest of the money goes to your mortgage company and there is nothing left. You end up being forgiven for the rest of the debt to the mortgage company, but they will make a bad report to the credit agencies about you and you may have trouble getting financing in the future for several years.

If you are not able to even do a short sale and also cannot make your payments, the bank may foreclose. In this case, they take over ownership of the house. If the house is worth more than what you owe, you can sometimes still get money out of it but in today's real estate market, most houses are not worth what people paid for them and they do not get anything. You do not have to pay your mortgage anymore if your house is foreclosed, but your credit will be damaged severely and you will lose the house and have to move out.

If you are having trouble paying your mortgage, be proactive and call your mortgage company. They are stuck with so many foreclosed homes they may be willing to restructure your loan to make it affordable for you to keep the house.

Yes, you must keep paying until the loan is satisfied. That normally happens at the close of escrow (final costs). The sale of the home pays off the loan against it.

While the home is on the market you must continue to make payments until closing.

I paid close to 5000.00 to stop foreclosure, but there was no drop in my rate(7.5%). Were they to drop my rate or modify it, if not how can I get a lower interest rate with bad credit?

Look into federal programs and check with local non-profits that help homeowners. They can go through your situation with you and help you figure out if there might be some relief programs you could apply for.

There are some conditions. The best idea to get relief is to sell the home in the more amount that you have owe form the mortgage company. Pay the rest of the installment in the lump sum amount and get relief with the monthly installments OR if the buyer of your house agrees that he/she will pay the rest of the installment then you just need to collect the amount of installment which you have paid in your past. {Ad removed}