If you have a mortgage on your home and you’re planning to sell, then plan to closely examine your mortgage contract first. You’ll be surprised at what you may find hidden.  Doug Francis (on his blog) has an interesting take on FHA mortgages and some of the fine print attached to them – and it makes for an interesting read.

When it comes to FHA loans, your mortgage contract doesn’t come to an end the moment you pay out the loan. The contract effectively comes to an end on the last day of the month that you pay out your loan. So if you pay out your loan during the first week of the month, you will be liable for the interest for the full month – that interest is not prorated.

This is just one situation where mortgage contracts have hidden little clauses to them, often buried in the legalese at the bottom. As Doug Francis points out, no one else can find this information – you have to do it yourself. Your lender is under no obligation to discuss your mortgage with anyone else, including your real estate agent.

Sometimes it can pay to have an attorney look over your mortgage contract to ensure there are no hidden nasties waiting for you. Your mortgage can include terms such as that related to interest payments, early termination costs, and costs such as insurance.

Before placing your home on the market, be sure to check over your mortgage. The last thing you need is to complete a sale relying on a certain amount being available from the sale for your new home, only to find hidden fees or charges eating that value away.

Related posts:

  1. When Is A Home Sale Legally Under Contract?
  2. When Is A Home Sales Contract Fully Ratified?
  3. Washington DC Real Estate – When Is A Contract Ratified?
  4. Sometimes It’s The Small Things That Prevent A Home From Selling
  5. Should You Rent Out Your Home Instead Of Selling?