How does a mortgage buyout work?
A mortgage buyout occurs when the owner of a property pays off their mortgage in full. This can be done either by refinancing the mortgage with a new loan, or by selling the property and using the proceeds to pay off the mortgage.
Mortgage buyouts are often used as a way to avoid foreclosure, as they allow the homeowner to keep ownership of the property and avoid damaging their credit score. In some cases, homeowners may also choose to buy out their mortgage in order to sell the property for a profit.