What Happens When You Sell a Home Under a Loan in Lafayette, CO?

What happens when you sell a home under a loan in Lafayette, CO?

When you sell a home under a loan in Lafayette, Colorado, your mortgage balance is paid off from the proceeds at closing. If your home sells for more than you owe, you keep the remaining equity. If it sells for less, you may need to cover the shortfall. The process is common and manageable with the right guidance from a team like The Levi Group Brokered by Real.

Selling a Home With a Mortgage: How It Works in Lafayette

Selling a home under a loan means that your current mortgage hasn’t been paid off yet. Fortunately, this is the standard scenario for most Lafayette homeowners. Here's what happens step by step:

1. Get Your Mortgage Payoff Amount

Request a payoff statement from your lender to determine exactly how much you owe, including any accrued interest.

2. Estimate Net Proceeds

Work with your real estate agent to calculate how much you’ll make after the mortgage, commissions, and closing costs are paid.

3. List Your Home for Sale

Your agent will help price your home strategically based on current Lafayette market conditions and recent comps in areas like Indian Peaks, Waneka Landing, and Coal Creek Village.

4. Accept an Offer and Go Under Contract

Once a buyer makes an offer and you accept, the transaction enters escrow. During this time, the title company coordinates with your lender to ensure your mortgage is paid at closing.

5. Pay Off the Loan at Closing

At closing, the title company uses funds from the buyer to pay off your remaining loan. Any leftover proceeds go to you.

What If the Sale Price Is Less Than the Loan Balance?

If your home’s market value is less than what you owe, you may face a shortfall. In this case, options include:

• Bringing cash to closing to cover the gap

• Negotiating a short sale with your lender (requires approval and more documentation)

• Exploring loan modification or refinance if you’re staying in the home longer

Short sales are more complex and can affect your credit, so consult a real estate expert and a financial advisor first.

What If You Have a Second Mortgage or HELOC?

Lafayette homeowners with second mortgages or HELOCs can still sell, but both loans must be paid at closing. Make sure to:

• Notify all lenders early

• Obtain payoff statements for each loan

• Inform your agent so they can manage the logistics

Benefits of Selling With a Loan in Today’s Market

Thanks to years of appreciation in Lafayette, many homeowners have built up solid equity—even if they haven’t owned the home long. Selling under a loan can still be profitable when:

• You’ve owned the home for several years

• Home values in your neighborhood have risen

• You’ve paid down a significant portion of the mortgage

Why Choose The Levi Group Brokered by Real?

Selling a home under a loan is standard—but working with experienced professionals makes the difference. The Levi Group helps Lafayette sellers:

• Determine accurate pricing based on real-time market data

• Navigate mortgage logistics with lenders and title companies

• Manage negotiations, inspections, and deadlines

• Maximize net proceeds through expert strategy and marketing

Final Thoughts: Selling Your Lafayette Home With a Loan

If you're selling a home in Lafayette and still have a mortgage, you're in good company. With help from a knowledgeable agent like Kirsten Johansson of The Levi Group Brokered by Real, you can move through the process smoothly, whether you're upsizing, downsizing, or relocating.

Contact Kirsten Johansson of The Levi Group Brokered by Real
📧 kirsten@thelevigroup.net
📞 (603) 583-0151
🌐 www.thelevigroup.net

Your Lafayette Home Selling Experts

Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or tax advice. Please consult with licensed professionals regarding your specific situation.