Quote:
Originally Posted by retiredguy123
Bond debt and mortgage debt are very different. When you sell your house, potential buyers won't care about your mortgage because it will be paid off at the closing. But, they will care about the bond. Unfortunately, many potential buyers would rather assume the bond debt than reimburse you for having paid it off.
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The buyers reimburse you for
any or all of the bond paid off through price appreciation of a higher priced house, at market value, over the house cost you paid plus the bond you paid. The particulars of the house has a signficantly larger impact on the market value than the bond. But the willingness of the buyer to pay your price may be influenced by whether there is a bond or not. Most likely, when the market value of two equal size and designed and located houses are the same, the house without the bond will sell
faster, but that does not factor the uniqueness of the buyer. Buyers can be irrational as well as sellers, being humans of course.
sportsguy