Selling Your Home
Can I sell my home if I still have a mortgage?
By Steve Lockhart
The short answer
The mortgage is not a barrier and it is a line item on the settlement. Escrow collects the buyer's money, pays off your loan, the title, and the closing costs, and the remaining balance, the net, is yours.
Full answer
The mortgage is not a barrier and it is a line item on the settlement. Escrow collects the buyer's money, pays off your loan, the title, and the closing costs, and the remaining balance, the net, is yours. If you owe less than the home is worth, the arithmetic is pleasant: the sale covers your loan and leaves a check. The real math is equity: your payoff number, the current value, the estimated costs, and the remainder in between. When the equity is positive, the sale moves as normal, and the payoff handles itself. If you owe more than the price, you are in a different category, and that is the moment for a careful conversation about a short sale, Nevada's rules on the balance, and the right professionals around you. Millions of people have sold homes with a mortgage outstanding. The question is never whether you have a loan. The question is what your equity is and what your plan requires.
Go a little deeper
Frequently asked
Questions sellers often follow up on
What if I owe more than the sale price?
That is where a Nevada professional matters: options like a short sale, if it fits, the protections of Nevada's anti-deficiency rules, and the tax consequences of a forgiven debt. This is advice territory, and I will help you bring the right attorney and financial advisor into the room early.
Do I need the lender's permission to sell?
If you have enough equity to cover the payoff, no, the escrow handles it. Permission only becomes an issue when the sale price falls short of the loan, and then it is a short-sale approval process with the lender, with extra paperwork and time.
Can I use my equity for the next down payment?
On a profit, yes, the net from your sale is yours to use, subject to the timing and any rules for your next application. Coordinating a sale with a purchase so the equity arrives on schedule is a common and a very manageable plan.
The Lockhart Method
The Lockhart Method
Your Home | My Strategy | Proven Results
My strategy: pull the payoff and the equity to the table before we talk timing. The closing always runs the numbers; the real decisions, the equity, the costs, the options, are where the plan gets real, and where you learn exactly how possible the move is.
Schedule a Consultation