Can You Sell a House With an Unpaid Mortgage? Absolutely—Unless It’s Delinquent

One of the most common questions homeowners ask is: “Can I sell my house if I haven’t paid off the mortgage?” The short answer is yes—but with a few important conditions.

Let’s break it down.

✅ Selling With a Mortgage Isn’t a Problem (When You’re Current)

If you’re up-to-date on your mortgage payments, selling your home is usually a smooth process. During the sale, the remaining mortgage balance is paid off directly from the proceeds at closing. Once that’s covered, any leftover amount is yours to keep or put toward your next home!

💡 Example:
You sell your home for $400,000. Your remaining mortgage is $250,000. At closing, that amount is paid off, and you walk away with the remaining equity (minus other closing costs). Easy.

⚠️ But What If the Mortgage Is Delinquent?

That’s where it gets a little more complicated. If you’ve missed payments and your mortgage is delinquent, you could be facing:

• The risk of foreclosure

• Damage to your credit score

• Limited time to sell before legal action begins

In these cases, you may need to negotiate with your lender or consider alternatives like a short sale (selling the home for less than what’s owed, with lender approval).

💬 What Should You Do?

If you’re struggling to keep up with mortgage payments or already behind, don’t wait. The sooner you take action, the more options you’ll have. Here’s what you can do:

• 📞 Contact your lender – Be honest and ask about any hardship programs or repayment plans

• 🏘️ Talk to a real estate professional – An experienced agent can help you explore your selling options, including short sales and avoiding foreclosure

• 📑 Know your numbers – Understand how much you owe, what your home could sell for, and your estimated equity

🤝 Let’s Find a Way Forward

Whether you're current on your mortgage or facing a few missed payments, there are solutions—and you don’t have to navigate them alone.

Thinking about selling, but unsure how your mortgage plays into it? Let’s chat. I’ll help you understand your options, protect your equity, and take the next best step forward.

📲 Reach out today to schedule a free, no-pressure consultation!