How do you sell a house that you're buying on contract from someone else?
what is involved in listing and selling the house, besides paying off the contract owner?
Answers:
The short answer here is that, unless prohibited in the purchase contract your mother signed, she can sell someone else exactly the bundle of rights-of-ownership she has. She can essentially substitute (sell) someone else into her position.
The longer answer and maybe more important is: it depends. Many people use "buying on contract" aka land-sale-contract or installment-sale-contract so that they can mask the transfer of ownership from the lender.
If the new buyer is a cash buyer or comes in with their own financing then it is easy. The new buyer simply cashes your mother out.
If the property is seller financed, it is slightly more tricky. Again, unless prohibited, she would put someone else in her spot who would then continue to make payments to the original seller. This buyer would purchase your mother's equity and cash her out.
Often, people use these arrangements to keep the underlying institutional financing in place and that is where it gets tricky. Under the federal Garn-St. Germaine act of 1982 ANY transfer here would make the loan subject to the due-on clause. The lender would have the right to "accelerate" and ask that it be paid off in full. If the origianl reason to structure the purchase this way was to keep a very low interest rate that existed on the note...
It isn't much different than having a mortgage. At closing the original seller would be paid and would sign the deed. The only problem would arise if the original seller was not cooperative or if there are judgment liens against that person.
Most contract allow you to make a contract with someone else to buy your house as long as the first contract is being honored. Read your contract, if there is NO stipulation to the contray you are fine
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