At Home Buyers of Savannah, we buy houses from owners in all kinds of financial situations, including those who own homes with a HELOC. In this blog post, you’ll learn the answer to the question, “Can you sell a house with a HELOC?” You’ll also learn why it’s so hard to sell on the market and discover the easiest way to move forward.
We buy houses in Richmond Hill, GA, and nearby areas in cash, which removes many of the problems tied to selling with a HELOC.
What Is a HELOC?
A home equity line of credit (HELOC) lets homeowners borrow against the equity in their home. Lenders treat it as a revolving line of credit secured by the property itself. Because the loan ties directly to the home, the lender places a lien on the property and keeps it there until the seller pays off the balance, even if the home goes up for sale.
Why Is It So Hard To Sell a House With a HELOC?
A HELOC doesn’t stop a sale, but it complicates every step of the process.
First, the seller must resolve the lien on the property. The HELOC lender holds legal rights to the home, which forces the seller to pay off the balance as part of the sale.
Second, if the mortgage balance, HELOC balance, and closing costs exceed the sale price, the sale proceeds won’t cover everything, and the deal will likely fall apart.
Third, the mortgage payoff process becomes more complicated. Instead of dealing with one lender, the seller now has to coordinate between different types of loans.
The Easiest Way To Sell Your House With a HELOC
Just because your home has a HELOC doesn’t mean you can’t sell it. At Home Buyers of Savannah, we make selling a house as-is as easy as possible, even with liens and loan balances complicating the process.
- Step 1: Share basic information about the property and the HELOC. We review the balance, lender details, and overall situation without asking you to list the home or negotiate with buyers.
- Step 2: We crunch the numbers and present a clear cash offer. The offer takes into consideration the HELOC, the primary mortgage, and expected closing costs.
- Step 3: Choose the closing date. We coordinate with the lenders and the title company to handle payoffs and paperwork. You close and move on without managing the payoff process yourself.
Call Home Buyers of Savannah To Sell Your Home
So, can you sell a house with a HELOC? Yes, but the traditional sales process creates delays, kills contracts, and causes deals to fall apart once lenders step in.
If you’re dealing with a HELOC and want a clear path forward, call Home Buyers of Savannah at 912-513-8744 to talk through your situation and learn how you can receive a fair cash offer. Then check out our other blog post about negative equity and how it affects your ability to sell your home.
