Short answer is yes; lawyer organizes the distribution or disbursement of funds from the sale proceed including paying all lien holders of the property. You would only get the net amount after everything is paid off.

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I cant get a straight answer. i have been saving money and being very careful to pay all my bills on time since the discharge of my bankruptcy last year. we had 800 credit score when we filed but my husband and i were both laid off and couldnt afford our payments anymore. since i included my house in the bankruptcy do i have to wait the three years required if it foreclosed or just two? also when does that time start? i have heard it is from the time of bankruptcy discharge....but also heard it doesn't start until the date the property is sold by the lender. i have called brokers and i get a different answer all the time. anyone have any personal experiences? i live in california

The problem isn't the mortgage or your credit score. It is that you filed bankruptcy. A bankruptcy will stay on your credit records for at least 7 years (this is from the date it went into effect and was approved by the courts, not from the date you necessarily filed). As long as the bankruptcy is on your reports, banks generally won't lend to you. All you can do is wait out the time and build your credit score back up. The only way you might get around this is by paying off the debts from every bank you borrowed money from. Since you declared bankruptcy, you don't have to do this - the debts were discharged. However banks look at it as if - you didn't pay your debts to banks before, so until you go through the entire process and it falls off your credit report after 7 years, they won't lend to you again. Other banks lost money on you when you didn't repay them, and they don't want the same thing to happen to them. Sorry you've have this problem, but that's the way the system usually works. Good luck.

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I have just sold a house and brought another. we are using the same lender. it's supposed to work like this, the loan we have for our current property is still active until settlement. we have another loan set up inactive but will take affect on settlement when we move into the new property. basicly the current loan rolls over into the next. i was suprised to get a chq today for early realease of the deposit from the sale of our current property. i called the solicitor and asked where it had to go, she said it's your money but we will still need our costs paid for out of it. i called the bank and they said to put it straight on the inactive mortgage, if i do that i can't get it out again if part of it needs to go to the solicitor. i can put it in an offset account but i dont want a problem at settlement if its not in the right place in the first place. what the hell am i supposed to do with this?? please no stupid answers it's not going in your bank account... thank you

make a stipulation in the sale that everything is paid off and do what you plannd with the rest very legal in my opion?