One of the most common worries we hear is whether you can sell a home you still owe money on. The answer is yes, and in fact most homes are sold with a mortgage still on them.
How it works at closing
When the sale closes, the title company uses the sale proceeds to pay off your remaining loan balance first. Whatever is left over after the payoff and any costs is your equity, and it goes to you.
Getting your payoff amount
Your lender provides a payoff statement, the exact amount needed to clear the loan as of the closing date, including any per-day interest. The title company handles this directly with the lender.
What if you owe more than it is worth?
If your balance is higher than the sale price, that is an underwater or upside-down mortgage. Options include bringing the difference to closing, or a short sale where the lender agrees to accept less than the full balance. It is more complex, but not a dead end.
A cash sale simplifies it
Because a cash offer is not waiting on a buyer’s financing, the payoff and closing happen quickly and predictably. We coordinate the payoff with your lender so you do not have to.
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