What Happens to Your Mortgage When You Sell for Cash?

What Happens to Your Mortgage When You Sell for Cash?

One of the most common questions we hear from homeowners is: "I still have a mortgage — can I still sell for cash?" The short answer is yes, absolutely. Here's exactly how it works.

Your mortgage gets paid off at closing

When you sell your home — whether through a traditional sale or a cash sale — your existing mortgage is paid off as part of the closing process. You don't need to pay it off before selling. The title company handles it automatically.

Who orders the payoff?

You don't have to contact your lender. The title company we work with orders a "payoff statement" directly from your mortgage servicer. This statement shows the exact amount needed to pay off your loan as of the closing date, including any interest and fees.

What if I owe more than the home is worth?

This is called being "underwater" on your mortgage. In these situations, we can discuss options — sometimes including a short sale, where the lender agrees to accept less than the full amount owed. This is a more complex process, but we have experience navigating it.

What do I actually walk away with?

You receive the difference between our cash offer and your remaining mortgage balance (plus any fees). We'll always be upfront with you about the numbers before you commit to anything.

The bottom line: having a mortgage doesn't complicate a cash sale. It's a standard part of the process and we handle it for you every step of the way.