Expert: Dick Dennis - 4/21/2007

Question
QUESTION: How much of the principal to a home purchase must be repaid before you are allowed to sell it?  I appreciate your help.
ANSWER: You may sell a home at any time, even the next minute after you have purchased it, Augusto. The principal has nothing to do with when or how you may sell your property. I wish you well.

Dick Dennis

---------- FOLLOW-UP ----------

QUESTION: Thanks for the answer.  Something doesn't sound right to me though.  If an owner is able to sell property immediately afer purchasing it, how does one account for all those foreclosures?  Obviously after a foreclosure, the bank or mortgage company has to find a way to sell the property anyway--after the owner has left.  One would think this would motivate the owner to find financing for selling expenses.  This is especially when the same outcome can occur for both instances: the owner becomes homeless.  At least in the case of selling the home himself, the soon-to-be ex-owner has a chance to make some profit for pocket money to sustain him through his homelessness.  If he's foreclosed upon, then it seems he's left with nada.  

Anyway maybe you can help clear up this confusion in my mind.  Thanks!

Answer
You never said anything about foreclosure, Augusto. I answered the question as you asked it.

A property goes into foreclosure when the lender has filed a preliminary notice of default (or notice of default in some states). If the owner does not make his payments, then the bank will foreclose and take the house from the seller.

Simple as that. As for the owner being without a house, yep, that's right. I would assume he would go out and find an apartment or house to rent, or indeed he would be out in the street.

The seller (owner) can't sell it if he owes more than what is the value of the property. Then he would have to find a buyer who would be willing to buy it with a "short sale."

I strongly suggest you buy or rent a book on foreclosures in your state. Each state has different foreclosure procedures. I do wish you well.

Dick Dennis