If you’re a homeowner in Philadelphia looking to sell your house but still have a mortgage, you might be wondering if it’s possible—or if you’ll run into complications. The good news is yes, you can sell a house with a mortgage! However, the process comes with some important considerations, such as paying off your remaining loan balance, understanding closing costs, and ensuring a smooth transaction.
Whether you’re selling to relocate, downsize, or avoid financial hardship, this guide will walk you through everything you need to know about selling a house with a mortgage in Philadelphia.
How Does Selling a House with a Mortgage Work?
When you sell a house that still has a mortgage, the proceeds from the sale are used to pay off the remaining loan balance. After paying off the mortgage and other associated costs, any leftover money is yours to keep.
Here’s a step-by-step look at the process:
- Determine Your Mortgage Payoff Amount – Contact your lender to find out how much you still owe on the loan.
- Find Out Your Home’s Market Value – Get an estimate of how much your home could sell for.
- Calculate Your Potential Profits – Subtract the mortgage balance, closing costs, and other fees from the expected sale price.
- List and Sell Your Home – Work with a real estate agent or consider selling to a cash home buyer for a faster, hassle-free sale.
- Pay Off Your Mortgage at Closing – When the sale is finalized, the mortgage lender is paid off first before you receive any remaining profits.
Will You Make a Profit When Selling?
The biggest factor in determining whether you’ll make a profit when selling your house with a mortgage is your home’s equity.
What is Home Equity?
Home equity is the difference between your home’s market value and what you still owe on the mortgage.
Example:
- Your home sells for $300,000
- Your remaining mortgage balance is $200,000
- After selling, you have $100,000 in equity before closing costs and fees
If your home’s value is higher than your mortgage balance, you’ll walk away with profit after closing costs.
However, if your mortgage balance is equal to or higher than the home’s value, you could break even or owe money at closing.
What If You Owe More Than Your Home’s Worth?
If you owe more on your mortgage than your home is worth, you are in a situation called negative equity, or being “underwater” on your mortgage.
What Can You Do?
- Short Sale – If your lender agrees, you can sell the home for less than you owe, but this can impact your credit.
- Pay the Difference – If you can afford it, you can pay the remaining balance at closing.
- Rent Out the Home – Instead of selling at a loss, consider renting the property until market conditions improve.
- Sell to a Cash Buyer – Some real estate investors buy homes even if they have little to no equity, offering a quick and easy solution.
How to Sell a House with a Mortgage Quickly
If you’re looking to sell your home fast and don’t want to deal with months of waiting, inspections, and repairs, consider selling to a cash home buyer.
Why Sell to a Cash Buyer?
✅ Fast Closing – Sell in as little as 7 days instead of waiting months.
✅ No Repairs Needed – Sell your home as-is, even if it needs work.
✅ Avoid Agent Fees – No commissions or hidden costs.
✅ No Risk of Buyer Financing Issues – Cash buyers don’t rely on bank loans.
Sell Your House with a Mortgage in Philadelphia—Fast and Hassle-Free
Selling a home with a mortgage doesn’t have to be stressful. If you’re looking for a quick and easy way to sell without worrying about repairs, agent fees, or long wait times, Home Cash Guys can help.
👉 Get a fair cash offer today! Contact Home Cash Guys and sell your house in Philadelphia—fast, easy, and with no hidden fees.
