Traditional Real Estate Transaction Question

[Bill Mitchell]

If the seller of the house has a mortgage on their property, and is looking to move to a new house. How do you structure it smoothly so:

1. The seller doesn't end up with two mortgages (one on their current house and one on the house they are buying)
2. When do you advice the seller to move? When the buyer has enough money down in escrow?

Thanks for the help guys. I don't know how this stuff works. The first house I ever got was a deed transfer from my folks and I bought my own shortly after in cash and rented out my old house.

[J Scott]

Unless the homeowner has the ability to finance two houses simultaneously, he probably shouldn't plan to close on the purchase of the new house until the sale of the old house is complete. And, as Tom points out, he shouldn't assume the the deal will go through (and shouldn't move out) until practically at the closing table.

We sold our primary residence last week, and didn't start packing until we saw a clear to close from the buyer's lender. And then we didn't actually have the movers start loading the truck until the morning of closing, after we had seen the HUD and knew the buyer's purchase funds were in escrow.

We actually tried to negotiate retaining the property until the day after closing so that we didn't start moving until after the closing, but the buyers wouldn't go for it (understandably). But, again, as Tom said, until the check clears (or at least until all the paperwork is signed), you never know...