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MMonroe · Mar 20, 2012, 09:38 AM

I owe the bank for the property. I am selling the property for more than I owe the bank,
What type of documents need to be recorded to protect myself and buyer?

tickle · Mar 20, 2012, 09:56 AM

Are you going through the proper channels with a lawyer and realestate agent? If so, it will be documented properly between your lawyer and the buyer's lawyer. You must have a lawyer. He will make sure the mortgage is paid off, and you retain the balance, then your buyer's lawyer arranges a mortgage for the property if the buyer has not already done so.

AK lawyer · Mar 20, 2012, 11:10 AM

Originally Posted by MMonroe

I owe the bank for the property. I am selling the property for more than I owe the bank,.
What type of documents need to be recorded to protect myself and buyer?

I assume that the existing mortgage will be paid off at closing. If so, at the same time the person who is buying the property from you will have executed a new mortgage and mortgage note. These documents (after the mortgage has been properly recorded) will go to you (or to whomever is financing the purchase if you are not doing so).

But as Tickle suggests, you would be mad to even consider doing this without the help of an experienced real estate attorney.

MMonroe · Mar 20, 2012, 02:08 PM

Yes, I iust hired an attorney... I am the seller and I still owe the bank part of the selling price of the property. The bank official said it was okay for me to hold the mortgage but title couldn't be transferred until bank is paid off. I would like to know the type of documents the buyer and seller need to sign and record to protect the payments of the existing mortgage.

ballengerb1 · Mar 20, 2012, 02:38 PM

If you are in the USA its customary to have a title company handle the paperwork at the closing. The bank will get its share and hand over the deed to you and then they will transfer it to the buyr. Is the buyer getting a mortgage? Plus you hired an attorney, smart move, he should be preparing some of the paperwork and answering your question.

tickle · Mar 20, 2012, 03:46 PM

MMonroe, do you live in another country? Is that why the procedure is confusing ?

ScottGem · Mar 20, 2012, 07:23 PM

At a typical closing in the US, several people gather together. The buyer and seller of course, with their attorneys. The bank holding the mortgage usually sends a rep as well as the buyer's lender and the buyer usually hires a title company to "run" the closing.

So, the buyer's lender then issues checks. One check goes to the seller's lender to pay off the mortgage balance. Other checks may go to pay for fees from various agencies, the lawyers, etc. The balance then goes to the seller.

But if you are financing the mortgage yourself, you will need to come up with the cash to pay your mortgage balance. Can you do that?

As for paperwork, the title company and the attorneys will prepare all that. The main thing is you sign a deed giving the buyers ownership and they sign a promissory note agreeing to pay the loan.

Didn't you go through a similar closing when you bought the property?

Fr_Chuck · Mar 20, 2012, 09:01 PM

If you are not getting enough money at closing to pay off the loan, you are can not put it in their name, and what you are going to do , is sell it on a contract for deed at this point, not a actual "sell" since they will not take ownership of it, till your loan is paid off and deed can be transferred