To sell a house with a mortgage, first list the property with a real estate agent, calculate net proceeds after mortgage payoff, and accept offers above this threshold. Secure pre-approval for potential buyers, disclose the mortgage status early, and use escrow to ensure the mortgage is paid off at closing. If the sale falls through, explore alternatives like a short sale or refinance.

Selling a house with a mortgage requires careful financial planning to avoid default. The U.S. Census Bureau reports that 64% of homeowners with mortgages sold their homes in 2022, with an average sale duration of 28 days (Zillow, 2023). Net proceeds must exceed mortgage payoff, closing costs (typically 5-6% of the sale price), and real estate agent commissions (5-6% of the sale price). For example, selling a $300,000 home with a $200,000 mortgage and 6% closing costs would require an offer of at least $318,000 to cover all expenses. Delays in closing can strain finances, as 22% of sellers face unexpected costs during escrow (National Association of Realtors, 2023). A mortgage payoff strategy ensures the seller retains equity while avoiding foreclosure risks. Data from the Federal Reserve shows that 78% of homeowners with mortgages sell above their loan balance, but 15% face challenges due to lowball offers or slow sales (2022 Homeownership Survey). Proactive negotiation and contingency planning mitigate risks, aligning with the 89% success rate of sellers who pre-disclose mortgage details to buyers (, 2023).