Hi everyone,

I got a very noob question here. Let say i bought a property for 100k with 30years loan. After 5 years, I wanted to sell the property. But market value is lower, say 80k. Within that 5 years its safe to say that i only managed to pay the interest only. So if i were to sell the house at at a loss of 80k:
a) Do i need to pay the bank the remaining 20k + whatever the interest is?
b) Do i need to pay one shot or is there any arrangement for a loan instead?

p/s: noted that there will be other costs, such as lawyer fee etc. Lets put that aside at the moment.

Thanks for your reply.

I dont quite understand the SnP part. Without the SnP signed, I am not going to get the 80k from the buyer right? I mean the flow should be sign the SnP, get the 80k from buyer, pay the bank + settlement. Isn't?

Or do i miss out anything?

Ok, it's getting clearer. So the SnP is going to be the main document to show my bank that there are buyer for the property + the 80k is already guaranteed? I do know that the law firm will hold the shortfall first, and they will pay it to the bank.

Thanks for your help!