I feel like a dummy for asking this but…
Let's say a person bought a house in 2000. They bought it for 100,000, and for the past 14 years they have been paying a mortgage, let's say they still owe 50,000 on the mortgage and they decide to sell the house.
Let's say they sell the house for 200,000.
Here is my question, when the sale is final, does the seller receive 200,000 dollars, and still have the 50,000 dollar mortgage? If so, is the seller still required to make payments over the next 16 years?
Is this how it works, or does the bank take the remainder of the mortgage and give the seller the remainder? Thus 150,000?
I am not sure how these transactions work.
Read more: First time home buyer/seller?
