6 Steps for Selling a House With Existing Mortgage Payments in 2021

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Even though the information on this web page is provided by a qualified industry expert, it should not be considered as legal, tax, financial or investment advice. Since every individual’s situation is unique, a qualified professional should be consulted before making financial decisions.


Can You Sell Your House Before Paying Off the Mortgage?

One may think that with current mortgage payments, it’s the wrong timing to sell their home.

Of course, if you need to sell quickly for a variety of reasons, selling your home with current mortgage payments may be your only option.

You’ll be happy to hear that selling a home during mortgage is actually common among homeowners.

Existing mortgage simply means you still owe a specific amount of money to your lender based on your home loan.

If you seek to sell your home now, of course, the amount of money you’d make on selling your home will be used to pay off the rest of your current mortgage.

Those who are at risk for foreclosure, are divorcing, relocating, or want to move out for other reasons, selling your home quicker may be most potent.

Many mortgages last 15 to 30 years, but as you may know, many homeowners move out much sooner.

Regardless of your reason for moving out before mortgage payments are complete, you can make that next move in the steps soon to follow.


How to Sell Your Home with Existing Mortgage?


1 Know Your Current Mortgage Payoff

First and foremost, it’s important that you know what you currently owe on your home mortgage.

A real estate agent can help you find out this information. You may also use a mortgage payment calculator online.

Knowing your outstanding mortgage payoff will allow you to decide on the selling option for your home and which option would best benefit you moneywise.


2 Find Out Your Home’s Value

You can use online sources to estimate your home’s value. Consider the current housing market and the value of homes in your area.

A more official option would be to have your home appraised.

Like finding out your payoff, knowing the value of your home will allow you to decide what you’ll do with your home when it comes to selling time.


3 Subtract Your Home’s Value from Your Mortgage Payoff

At this point, it’s time to decide how much money you may make if you sell your home with existing mortgage.

If your home value is $250,000, and your mortgage payoff is currently set at $80,000, you’ll have $170,000 if you sell your home for its full value.

With this in mind, you may consider increasing the asking price for your home when you go to sell it.

However, if it’s too high off the market or simply isn’t worth the value, expect low offers or no offers at all from potential buyers.

Don’t quit just yet; there are other options if your mortgage payoff is too high.


4 Think About Going Through the Normal Selling Process

In the case that the potential amount you’d make off your home if you sold it at its current payoff is reasonable, go through the traditional selling process.

Sometimes a homeowner will place their home below market value on purpose with the intent to drive in several buyers.

In turn, these buyers may make offers well above the home’s value in the form of a bidding war.

However, if you’re completely content with selling your home for or around its current value, this may be the simplest and most reliable option.

This way, you can ensure to get offers only around your asking price versus a wide range of high and lower offers if you were to place the asking price below value to increase bidders.


5 Consider a Short Sale

If your home mortgage is just too high for comfort, your best option here would be to consider a short sale.

This is the best option to take if the housing market is taking a hit or if you are near foreclosure.

During a short sale arranged by your bank, you can make an agreement with your lender to reduce payoff in voluntary surrender of your property.

Unfortunately, a short sale can have consequences. It will hurt your credit for up to seven years, it can be time-consuming, and it can eliminate financing options for up to two years on real estate.

Do further research on the pros and cons of a short sale before deciding on this option.


6 Sell Your Home Quickly with House Cashin

If you aren’t sure if selling your home on your own or through a realtor is for you, sell your home quickly with House Cashin.

We’ll purchase your home as is, so no repairs are necessary as may be required if selling any other way.

You’ll have cash quickly to ensure your home is out of your hands when you need, all with no initial fees.

Any costs will be rolled into the amount we pay you, so you can pick up your cash (yes, we offer cash!) and be on your way.

The main benefit of House Cashin, besides getting your money’s worth out of your Texas house, is that we can have it sold in just 3 to 30 days.

The average selling time through a realtor is around two months. If our timeline is more reasonable for you, get in contact with us today. You can call us at (877) 355-1244 or request an obligation-free cash offer online.



Selling a home with outstanding mortgage payoffs isn’t as difficult or risky as one may believe. Many individuals sell their home before their mortgage is fully paid off.

Your initial steps are to find out your current mortgage payoff, home’s value, and the potential amount you’d make if you sold at home value.

Consider selling your home the traditional way if the potential you’d make is well worth it after subtraction of home mortgage. If not, consider a short sale or quickly sell your home with House Cashin.

In some scenarios, your home mortgage may be low in comparison to the current value of your home. Otherwise, consider what is most important to you.

Selling for less but reducing mortgage, selling quickly for less, or selling for higher but on the market longer are three options you should generally consider.

Written by Brian Robbins

With over 20+ years of experience in real estate investment and renovation, Brian Robbins brings extensive knowledge and innovative solutions to the HouseCashin team. Over the years Brian has been involved in over 300 transactions of income producing properties across the US. Along with his passion for real estate, Brian brings with him a deep understanding of real estate risks and financing.