Selling the House

Client can sell the house and will be required to pay off whatever is left on the loan balance, a profit gained from the sell is 100% to client. In the case where you have to sell the property, if the value is lower than the loan balance that client still owes, they will be released of their obligations and the investor will try to regain their investment back. The loss means if the house/property being financed is depreciate (the value is going down) and the client will want to sell the house at that time which means the client must pay the balance off with the less amount they will get from selling the house. In that sense, clients have to add more from their own pocket because the value of the house does not enough to cover the whole balance they still owe.