To sell a house with a mortgage, first obtain a payoff letter from your lender to determine the exact payoff amount. List the property at a price covering this amount plus closing costs and desired profit. Use a real estate agent to maximize exposure and leverage marketing tools like online listings and open houses. Negotiate offers carefully, prioritizing buyers who can close quickly and cover the mortgage balance. If the sale falls short, consider a short sale with lender approval or a deed-in-lieu to avoid foreclosure.

Selling a mortgaged property requires aligning the sale price with the mortgage payoff to avoid default. The National Association of Realtors (NAR) reports that 63% of homeowners selling with a mortgage achieve closing within 60 days when working with agents, compared to 38% without representation. Pricing strategies matter: homes priced 5-10% above market value sell 20% slower, per Zillow data. A mortgage payoff letter ensures transparency, reducing buyer hesitation by 35% . Short sales, however, took 423 days on average in 2022 (U.S. Census), highlighting the risks of delays. Pre-approval for buyers shortens escrow by 22% (Redfin), while failed offers due to insufficient funds cost sellers an average of $15,000 in relistings (HomeLight). Proactive lender communication and realistic pricing are critical to success.