Are you thinking about selling your home but still have a mortgage to pay off? You're not alone, and the good news is: yes, you can absolutely sell a mortgaged house. In fact, it's a common scenario for many homeowners. The key is understanding the process and taking the right steps to avoid any delays.

In this article, we'll break down the process of selling a mortgaged house, key things to consider, and how Holo can help you navigate it all without a hitch.

Can You Sell a Mortgaged House?

The simple answer: Yes, you can sell your house even if you still have an outstanding mortgage. When you sell, the proceeds from the sale are used to pay off the remaining loan balance, and any leftover amount is yours to keep.

This is a standard process, as most people don't wait until their mortgage is fully paid off before moving to a new home. Whether you're relocating, upgrading, or just looking for a change, selling with a mortgage doesn't have to be complicated.

How Does Selling a Mortgaged House Work?

Selling a home with a mortgage involves a few extra steps compared to selling a fully paid-off property. Here's how it works:

Check Your Outstanding Mortgage Balance

Contact your lender and request a mortgage payoff statement. This document tells you exactly how much you owe, including any interest and fees up to the payoff date. Knowing this number helps you price your home effectively.

Determine Your Home's Market Value

Get a professional property valuation or work with real estate experts to understand your homebs current market value. This step is crucial to ensure you'll cover the mortgage and still make a profit.

Calculate Your Home Equity

Home equity is the difference between your home's value and the remaining mortgage balance.

Formula: Home Equity = Current Market Value - Outstanding Mortgage

Positive equity means you'll make money after the sale. Even if your equity is small, the process remains the same.

List Your Property

Choose a reliable real estate agent or list your home on trusted property platforms. Highlight your home's best features and ensure it's well-presented for potential buyers.

Review Offers and Accept the Best One

Once offers start coming in, review them carefully. Consider not just the price, but also the buyer's readiness to close quickly, which can help avoid delays.

Pay Off the Mortgage at Closing

At the closing meeting, the buyer's payment goes to your lender first to settle the mortgage. Any remaining funds after the mortgage is paid off will be transferred to you.

Key Considerations Before Selling a Mortgaged House

Before you list your property, keep these important factors in mind:

1. Prepayment Penalties: Some mortgage agreements include a fee for paying off the loan early. Check your mortgage contract or ask your lender if this applies to you.
2. Closing Costs: Selling a house isn't just about paying off the mortgage. There are other costs, such as agent fees, transfer fees, and administrative expenses. Budget for these costs to understand your net profit.
3. Timing the Sale: Market conditions can influence how quickly your home sells and at what price. Consider factors like demand, seasonality, and property trends in your area.
4. Outstanding Liens or Second Mortgages: If you have additional loans secured against your property, like a second mortgage, these must also be settled during the sale.

FAQs About Selling a Mortgaged House

Can I sell my house if I am behind on mortgage payments?

Yes, but the process may involve additional steps. Itbs best to consult with your lender early to understand your options.

Do I need my lender's permission to sell?

No, you donbt need permission to sell, but you do need to inform them as theybll be involved in the mortgage payoff process.

What if I am relocating and need to sell quickly?

Our concierge team can help expedite the process by connecting you with serious buyers and handling the administrative tasks efficiently.

How long does it take to sell a house with a mortgage?

The timeline varies based on market conditions, but with proper preparation and expert guidance from Holo, the process can be swift.

Conclusion

Selling a house with a mortgage might seem complex, but it doesnbt have to be. With the right knowledge and expert support, you can navigate the process smoothly and confidently.

At Holo, we're here to guide you every step of the way, ensuring that selling your mortgaged home is as stress-free as possible.