Selling a House and Buying a new House

El Hud
El Hud Quicken Windows 2017 Member ✭✭
in Registers & Transactions (Windows)

Hello, I track my homes value and loan in Quicken. Every month the mortgage is decreased as payments are made, and I update the estimated value via Zestimates. We bought a new home and sold the old one. With the remaining balance on the loan for the house we are selling, it will be paid off after the house closes. How do I close out the loan in Quicken if I am not writing a check to pay off the mortgage? Where do I say the funds are coming from? When I have a zero balance, do I just delete the loan from the register? Secondly, in the register where the old house is being tracked by Zillow updates, do I just edit the details and add my new address, or do I close/delete this account and add my new address for tracking purposes? Thank you again!

Best Answer

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓

    With the remaining balance on the loan for the house we are selling, it will be paid off after the house closes. How do I close out the loan in Quicken if I am not writing a check to pay off the mortgage?

    I take it that the old mortgage payoff will be listed in the final HUD-1 settlement statement? That's very common.

    Assuming that the home sale is a "stand alone" transaction not somehow entangled with a simultaneous new home purchase, then you will deposit a net check into your bank Account. You'll split that deposit and the first line of the split will be the GROSS amount of the sale, before the loan payoff. The second line of the split will be a deduction from the gross amount, recorded as a Transfer to the loan Account, zeroing it out. With that done you HIDE and CLOSE the loan Account.

    As to your second question about the house Account, you should zero out that Account as part of a comprehensive entry that also creates the gain (assumed) on the sale of the old house. Then create a new house Account.

Answers

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓

    With the remaining balance on the loan for the house we are selling, it will be paid off after the house closes. How do I close out the loan in Quicken if I am not writing a check to pay off the mortgage?

    I take it that the old mortgage payoff will be listed in the final HUD-1 settlement statement? That's very common.

    Assuming that the home sale is a "stand alone" transaction not somehow entangled with a simultaneous new home purchase, then you will deposit a net check into your bank Account. You'll split that deposit and the first line of the split will be the GROSS amount of the sale, before the loan payoff. The second line of the split will be a deduction from the gross amount, recorded as a Transfer to the loan Account, zeroing it out. With that done you HIDE and CLOSE the loan Account.

    As to your second question about the house Account, you should zero out that Account as part of a comprehensive entry that also creates the gain (assumed) on the sale of the old house. Then create a new house Account.

  • El Hud
    El Hud Quicken Windows 2017 Member ✭✭

    I love this site! Thank you very much!

  • El Hud
    El Hud Quicken Windows 2017 Member ✭✭

    Tom, one last question. on the 1st of every month, an automatic payment would pop up transferring funds from an account to pay the mortgage. How do I cancel that reminder, or will it go away when the loan is zeroed out? Thank you

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭

    That Reminder should have gone away with the close out of the Account.

    Do you see that Reminder under Tools > Manage Bill & Income Reminders? If you do, then you should be able to delete it.

    If it's not there then look back into that old loan Account and see if there's any balance, positive or negative, in the Account as that might be triggering something. If there is some balance there I'd make an offsetting self-referential entry, ("Category" used for the entry is the same Account as the Account in which you're making the entry - [Account name], to zero it out.

  • El Hud
    El Hud Quicken Windows 2017 Member ✭✭

    Perfect! Once again, Thank you!

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