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Unformatted text preview: the sale of your home. What happens to my mortgage when I sell my home has more to it. What if you are in a situation like so many where your home is now not only worth less than what you purchased it for, but less than what you owe the lender? Proceeds of Sale This is called a short sale when you sell your home and the lender is set to receive less than they lent you. In this case this lender has to agree to the short sale or accept that you pay the difference out of escrow. It is very difficult to get the bank to approve a loss like this, so most likely you will have to miss many payments before they realize that a short sale would be better than a foreclosure. META description: What Happens To My Mortgage When I Sell My Home? Depending on the situation, your mortgage will be paid off in full or the lender will take a loss....
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- Spring '10