Can You Sell a House With a Mortgage? | 6 Things to Know When Selling

Pezon Properties • January 13, 2023

A 30-year fixed-rate mortgage is the most popular type of mortgage, yet the typical homeowner only lives in their home for around eight years on average. What happens in the event homeowners want to move but still owe money on their mortgage?


Real estate often involves selling a home with a mortgage attached. If the home sells for more than what is due, the lender is paid off at closing from the profits of the sale. This comes from the seller’s pocket if the home sells for less than what is owed, or from a combination of the two. Here’s what you should know about selling a home with a mortgage.

Can You Sell a Home With a Mortgage?

You can sell a house even if you have unpaid mortgage debt. In reality, selling a property while still owing on a mortgage is rather normal. You must pay back the remaining balance of the mortgage to accomplish this after the transaction is complete. The majority of those who sell their houses do so with unpaid mortgages. As long as there’s enough equity to pay off the mortgage in full when they close, having a mortgage does not prevent a property sale.



You can raise your home equity by reducing your loan debt or by seeing an increase in the value of your property, brought on by either market fluctuations or by making improvements that increase its value.


Remember that closing fees, which may include realtor commissions and other expenses, may be required when you sell your home. If your equity is only marginally positive, it might not be sufficient. You will need to utilize other resources, like savings, to make up the shortfall if there is not enough equity in your house to pay off the mortgage with the proceeds of the sale. Here are the essential details you need to know about selling a house with a mortgage:

How to Sell a House With a Mortgage

Speak with your lender

If you’re considering selling your house while still owing on the mortgage, the first thing you should do is get in touch with your lender and get a payback statement or letter. This paperwork outlines the amount you must give the lender when you sell. Even with a fixed-rate mortgage, since you’re paying monthly, the payback amount will fluctuate each month. When your closing date is determined, be ready to get a second statement.


Instructions on how to send a final payment to pay off a loan in full are provided on a payoff statement. You will be given a particular amount to pay, along with the payment deadline and any accumulated interest and other fees. Additionally, it can contain fines for earlier late payments.

Determine the home’s price

Set a fair asking price for your house with the assistance of your agent. A realistic buyer’s potential willingness to pay should be reflected in the pricing, which should be in accordance with market expectations. If you set the price too high, the house can languish on the market without any interest, forcing you to settle for less money than you should.


You might already have an idea of how much your house is worth, but your agent should provide you with a comparative market analysis (CMA), which compiles important details like the selling prices of adjacent properties and current market trends to give you a full picture.

Choose a competent agent and set a reasonable asking price

Begin searching for a professional real estate agent if you are confident in the value of your house and the ability of the net revenues to pay off your mortgage and associated costs. Since you’ll be collaborating with your agent throughout the selling process, finding an excellent one that you get along with is crucial.


Setting a reasonable listing price for your house with the aid of a competent realtor can help you comprehend the regional market. They may help you assess any offers you receive to ensure you’re receiving the greatest value, and they may advise showcasing the house to help create more attention.

Choose the appropriate time to sell

Since every person’s position is unique, determining the ideal moment to sell can be challenging. Here are some things to consider:


  • Are you certain you can find a new home? You could discover that it’s more difficult than it used to be to find a new home in many markets. It might be challenging to acquire under the same circumstances that make it a favorable time for you to sell. It makes sense to avoid ever having to make two loan repayments at once, but you might not want to sell your home in order to relocate into a flat or an apartment and shell out money for storage.


  • What type of market are you entering? A buyer’s market and a seller’s market are very different from one another. You may set your house price higher than you would if the opposite were true and there were few properties available for buyers in your neighborhood due to the increased competition. Having your real estate agent conduct a comparative market study is beneficial.


  • Why are you relocating? When moving because of a job, you might wish to do it more quickly than when downsizing or trying to take advantage of a hot housing market.

Analyze closing expenses

You’ll get a settlement or closure statement after the deal has entered escrow. This document lists all of the costs and credits associated with your property sale transaction in detail. The closing expenses for the seller are shown below and consist of:


  • HOA and transfer costs that are prorated (if applicable)
  • Realtors’ commission
  • Prorated property taxes
  • Mortgage payoff
  • The tax on real estate transfers
  • Title and related costs
  • Lawyer’s fees


Go through the list to make sure you have everything in working order. After confirmation, be ready for closing day.

Sell the property and settle the outstanding debt

Pay off the current mortgage concurrently with selling your house. Get a payback estimate from your lender before you do this. Since you owe interest up to the date of the relocation, you cannot just mail in a check for the remaining loan sum.


Your payment quotation will include an expiration date when you get it. The sum shown is what you owe as long as your payment is received before that time. A new quotation must be created if necessary. If you pay off the loan before it expires, you will receive a refund for whatever interest you didn’t have to pay since you sold the property sooner.


In some cases, you could use the money from the sale to pay off other liens, notably those for contractor work or unpaid taxes. If you are interested in selling your house fast in Pennsylvania contact us, we can help.

Sell Your House Today – Contact Pezon Properties

Selling a house with a mortgage is a pretty regular occurrence. In reality, it’s probable that the majority of real estate deals include properties whose sellers are still obligated by their mortgages. Make sure you are aware of your home’s payback amount as well as the anticipated selling revenues after closing costs and commissions. That will give you the most accurate picture of the amount of money you’ll ultimately gain from the transaction. Call us now to see how we can help, we can also help you selling an inherited property.

Give us a call anytime at 484-484-0971 or fill out this quick form to get started today!

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Mathew Pezon

About the author

Mathew Pezon

Mathew Pezon is the founder and CEO of Pezon Properties, a cash home buying company located in Lehigh Valley, Pennsylvania. With several years of experience in the real estate industry, Mathew has become a specialist in helping homeowners sell their properties quickly and efficiently. He takes pride in providing a hassle-free, transparent, and fair home buying experience to his clients. Mathew is also an active member of his local community and is passionate about giving back. Through his company, he has contributed to various charities and causes.

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By Mathew Pezon • June 9, 2026
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Our Story: How Pezon Properties Started Helping Allentown Homeowners

By Mathew Pezon • May 28, 2026
Selling a house can feel overwhelming. You might need to move fast, or your home might need repairs you cannot afford. Some people face foreclosure or just want to avoid the hassle of listing with an agent. That is where we come in. Pezon Properties started with a simple goal: to help Allentown homeowners sell their houses quickly and fairly. We buy homes for cash, no matter their condition. Over the years, we have helped hundreds of families in the Lehigh Valley move forward with their lives. This is our story. We want you to know who we are, why we do this work, and how we have grown to serve more people across Allentown and beyond. Why We Started Buying Homes in Allentown Every business has a beginning. Ours started when we saw real people struggling with real problems. Homeowners in Allentown were stuck. They needed to sell quickly, but the traditional real estate process took too long. Repairs cost thousands of dollars. Agent fees took a big chunk of the sale price. Many families simply could not wait months for a buyer. We asked ourselves a question: What if there was a faster, easier way? That question led us to create Pezon Properties. We wanted to build a company that could help people when they needed it most. Whether someone faced foreclosure, inherited a property, or just wanted to move on quickly, we wanted to be the solution. Allentown became our home base for a reason. This city has a rich history and strong neighborhoods. Families here work hard and deserve respect when selling their biggest asset. We saw an opportunity to serve our community in a meaningful way. From day one, we made a promise: treat every homeowner with honesty and fairness. No gimmicks. No hidden fees. Just straightforward cash offers and quick closings. We built our reputation one house at a time, one family at a time. Our first few deals taught us valuable lessons. We learned that communication matters. People want to understand the process. They want to feel heard. They want someone who cares about their situation, not just another transaction. Those early experiences shaped how we do business today.

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By Mathew Pezon • May 27, 2026
Who Owns and Runs Pezon Properties Pezon Properties is a family-owned business founded by Mat Pezon, a Lehigh Valley local who spent 12 years as a chemical engineer before transitioning to full-time real estate investing in 2014. Mat isn't a developer who parachuted in from outside the area. He grew up here, he invests here, and he still runs the business from here. His background is a little different from most cash buyers you'll come across. He completed a Master's in International Management at IE Business School in Madrid as a Fulbright Scholar, which shapes how he thinks about running a business. Methodical. Numbers-driven. Accountable. That approach carries through to how Pezon Properties evaluates homes and makes offers. Mat built the team around people with hands-on experience in construction, property management and real estate investing throughout Lehigh County. That mix matters because it means the offer you receive is based on actual knowledge of local property values and real repair costs, not a formula plugged into a spreadsheet. When you contact Pezon Properties, you're talking to people who are directly involved in buying and running these properties. Mat and his team answer their own phones, visit homes themselves and make decisions on the spot. There's no call center, no middleman and no runaround. The reason the business exists at all comes down to a straightforward observation: too many Allentown homeowners facing tough situations, whether that's a property needing major repairs, a timeline that doesn't work with a traditional listing, or just the need for certainty, didn't have a good option. Pezon Properties is that option.

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By Mathew Pezon • May 26, 2026
Selling your home can feel overwhelming. You might be dealing with repairs you cannot afford, a job relocation, or a family situation that needs a quick solution. When you need to sell fast, cash home buyers are a good option. But not all cash buyers are the same. Pezon Properties stands out in Allentown, PA. We are not just another company trying to buy houses cheaply and flip them for profit. We are your neighbors. We understand the Lehigh Valley because we live here too. We know what it means to struggle with an old house that needs constant fixes. We know what it feels like when life throws you a curveball, and you need to move quickly. This article will show you exactly what makes us different. You will learn about our local roots, how we treat people, and the promises we make to every seller. By the end, you will understand why homeowners in Allentown choose us over other cash buyers. Our Local Roots Make a Real Difference Pezon Properties is not a national chain with an office in every state. We are a local Allentown company. Our team lives in the Lehigh Valley. We shop at the same stores you do. Our kids might go to school with your kids. This matters more than you think. When you work with a local company, you get someone who understands your neighborhood. We know which areas of Allentown are growing. We know which streets have the best schools nearby. We understand the local market better than any out-of-town investor ever could. This knowledge helps us make fair offers that reflect what your home is really worth.