🧾 Selling a House With a Mortgage Still Owed?
What Happens When You Still Owe Money But Want to Sell
Think you can’t sell your home just because you still have a mortgage? Good news — you can. In fact, most homeowners still have a balance on their loan when they sell.
🏦 What Happens to the Mortgage When You Sell?
When you sell a house with a mortgage:
- The buyer’s funds go to a title company
- The title company pays off your mortgage balance first
- You receive whatever is left as your sale proceeds
This happens automatically during closing — you don’t need to pay it off ahead of time.
🧮 Example:
- Home sells for $280,000
- Mortgage payoff is $195,000
- Closing costs are $8,000
- You walk away with ~$77,000 (after all deductions)
❓ What If You’re Behind on Mortgage Payments?
You can still sell — but it’s important to act fast. If foreclosure hasn’t started yet, selling may allow you to:
- Avoid foreclosure
- Protect your credit
- Walk away with cash before it’s too late
📉 What If You Owe More Than the Home Is Worth?
This is called being “underwater” on your mortgage. You may be facing:
- Short sale (with lender approval)
- Negotiated lien release
- Foreclosure risk
At Sell My House Texas, we don’t always recommend a short sale — ask us about our Equity Protection Program to explore other options.
💡 Can You Sell With a Reverse Mortgage?
Yes — but reverse mortgages work differently.
To sell:
- The home must be worth more than the loan balance
- The reverse mortgage must be repaid in full at closing
- If the owner has passed away, heirs usually have 6–12 months to sell or refinance
✅ How We Help Homeowners Sell With a Mortgage
At Sell My House Texas, we help people in Texas sell houses every day — even when they:
- Still owe a lot
- Are behind on payments
- Have multiple liens
- Are trying to sell fast to avoid trouble
We’ll buy it directly, take care of the paperwork, and help you get the mortgage paid off at closing (as long as the situation calls for it).
🔗 Related Blog
Worried about falling behind on payments or facing foreclosure? Read our guide on how to sell fast and stop foreclosure before it starts.
📞 Need to Sell a House With a Mortgage in Texas?
You don’t need to pay it off early. You just need the right buyer and a team that understands how to handle the process quickly and legally.
📞 Call Sell My House Texas at (214) 471-6720