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You have decided it’s time to sell your home, but have not yet paid off your Kansas City home loan. Even if you have not paid off your Kansas City home loan, you can still sell. However, you will still have to pay off what you owe. Before selling, make sure you:

Inform Your Lender

If you have not paid off your Kansas City home loan and plan to sell, inform your lender first. Mortgage contracts often have what’s called a “due on sale” clause that protects the lender when a home that has not been paid off is sold. The mortgage is not transferred to the new homeowner when the home is sold. The sale proceeds are then used to pay off the mortgage and the buyer must get a new one.

Gather Your Papers

There are several papers you will need to sell your home which include:

  • Deed
  • Property tax receipts
  • Homeowner’s insurance payment history

The deed to the property contains the property description and also acts like a sales contract. When you sell your home, you will need the deed to transfer ownership to the buyer. You don’t need the original deed, as a certified copy will do just as well.

Property tax receipts are proof that home taxes were paid. You receive a receipt by mail when you pay your taxes. If you need a duplicate, you can request one by mail or online, but you will have to pay a small duplication fee.

Have a detailed record of your homeowner’s insurance payments. Buyers don’t want to be surprised by claims on the home, so they will ask you to provide a report. If you have a history of many claims on the home, buyers may have a difficult time getting coverage should they choose to buy.

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