It is advisable that the listing realtor obtain “current” pay off statements from the Seller. These statements should be obtained at the initial listing of the property. With these current pay off statements, the realtor can determine whether the estimated sale price will result in a short sale, and whether there are any defaults with the monthly payments (possible foreclosure).
Be sure that the Seller provides statements on all outstanding mortgages (first, seconds and/or home equity loans). Some Sellers do not understand that their home equity loan is really a mortgage.
Obtaining the current pay off statements should be a part of the realtors listing checklist.
Please contact me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.