To sell a mortgaged property, first contact the mortgage lender to disclose the intent to sell and request a payoff statement. List the property with a real estate agent, emphasizing transparency about the mortgage status. Price competitively, often below market value to attract buyers quickly, and disclose all liens or pending legal issues. Hold open houses and negotiate offers while ensuring the buyer arranges financing or secures a replacement mortgage. Finally, after closing, remit the mortgage payoff to the lender and transfer ownership to the buyer.

This process prioritizes lender communication to avoid default risks and ensures legal compliance. According to the National Association of Realtors (NAR), 62% of homeowners facing mortgage delinquencies sold their properties with lender cooperation, reducing foreclosure risks by 38% (2022). Competitive pricing aligns with data from the Journal of Real Estate Finance, showing properties priced 5-10% below market value sell 20-30% faster. Real estate agents play a critical role: 89% of homeowners sold their mortgaged properties through agents, leveraging their expertise in navigating liens and financing (NAR, 2023). Transparent disclosure of mortgage status builds buyer trust, as 76% of buyers prefer properties with clear financial histories (RealtyTrac, 2023). Timely lender coordination prevents delays, with 45% of sales failing due to unaddressed mortgage hurdles (American Bankers Association, 2022). Combining these steps minimizes legal risks and accelerates transactions.