Most mortgages contain an “acceleration clause,” which provides that the lender has the right to accelerate the entire balance of the mortgage in the event of an uncured default.
How much can you sell your house for?
The “fair market value” of real estate is defined as the amount that the house will sell for if the seller is not under any pressure to sell and the buyer is not under any pressure to buy. Accordingly, if you are selling your house, have already signed a contract to buy another one, and only have a two-month timeframe to sell, you are under pressure to sell and may have to accept a “below fair market value” offer. (See my article - “Should I Buy a New Home Before I Sell My Own”).