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How To Sell House With Mortgage In Dallas, Texas
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Dallas Mortgage & Home-Selling Guide
How to Sell a House With a Mortgage in Dallas, Texas
You do not have to own your house free and clear before you sell it. In a typical sale, the mortgage is paid from the closing proceeds and you receive the remaining funds after the mortgage and other seller-paid costs are deducted.
See the Selling Process
Quick Answer: Can You Sell a House That Still Has a Mortgage?
Yes. Determine the official mortgage payoff, compare it with the expected sale price, identify any second mortgages or other liens, and make sure the sale will produce enough funds to satisfy the amounts due at closing.
1. Review Mortgage→2. Request Payoff→3. Estimate Equity→4. Check Other Liens→5. Sell Property→6. Mortgage Paid at Closing
Your Mortgage Balance and Mortgage Payoff Are Not the Same Thing
The amount shown on your monthly mortgage statement is useful, but it is not necessarily the exact amount that must be paid to completely satisfy the loan on the day you sell.
Current Principal Balance
This is the principal amount currently shown as unpaid on the loan. It is a good starting point when estimating your equity.
Official Payoff Amount
The payoff can include remaining principal, interest through the payoff date, unpaid fees, and other amounts required by the loan terms. If your mortgage has a prepayment penalty, that may also affect the payoff.
Request a Written Payoff Statement
The Consumer Financial Protection Bureau explains that a mortgage servicer generally must provide an accurate payoff statement within seven business days after receiving a written request, subject to limited exceptions. Your title company may also request the payoff after you authorize it.
Read the CFPB payoff explanation →Step-by-Step: Selling a Dallas House With an Existing Mortgage
The process is usually straightforward when the property has enough value to pay off the mortgage and other amounts due at closing.
1
Review Your Latest Mortgage Statement
Find the name of your mortgage servicer, approximate principal balance, loan number, interest rate, and servicer contact information. Your servicer is the company that receives your monthly mortgage payments.
2
Request the Official Mortgage Payoff
Ask your servicer for a payoff statement for an estimated closing date. The payoff is date-sensitive because interest can continue to accrue until the loan is paid.
3
Check for a Second Mortgage, HELOC, or Other Secured Loan
If you have a home-equity loan, HELOC, second mortgage, or another lien secured by the property, it may also need to be paid or otherwise resolved as part of the closing.
Read the Dallas Liens Guide →4
Estimate Your Equity and Likely Take-Home Amount
Compare the expected sale price with the mortgage payoff, other liens, taxes, closing costs, negotiated broker compensation, seller credits, and other seller-paid expenses.
5
Choose How You Want to Sell
You may sell through a real estate agent, sell the property yourself, or consider an as-is cash sale. Having a mortgage does not by itself prevent you from choosing any of these selling methods.
6
Open Title and Authorize the Payoff Request
After you are under contract, the title or closing company typically confirms ownership, reviews liens, and obtains the payoff information needed to prepare the closing figures.
7
The Mortgage Is Paid From the Closing Funds
At closing, the amount required to satisfy the existing mortgage is deducted from the transaction funds. Federal Closing Disclosure rules provide for first- and second-mortgage payoffs and other seller obligations to be shown in the seller's closing figures.
8
You Receive the Remaining Seller Proceeds
After the mortgage, other required payoffs, and seller-paid costs are deducted, the remaining amount is the seller's net proceeds. Review the exact figures on the final closing statement.
Quick Mortgage Equity Estimate
Enter a possible sale price and your estimated mortgage payoff to get a quick planning estimate. This is not a closing statement.
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Enter your estimated sale price and mortgage payoff, then calculate.
Estimated amount remaining after the mortgage, other secured liens, and the selling-cost percentage entered:$0Taxes, HOA balances, repair credits, judgments, prorations, and other costs are not included unless you add them to the secured-liens field or increase the selling-cost percentage.
What Can Make the Final Mortgage Payoff Different?
The final number can change between the time you list the property and the day you close.
Daily Interest
Interest may continue to accrue through the date the loan is actually paid.
Late or Unpaid Charges
Unpaid fees or other amounts charged under the loan terms may be included in the payoff.
Prepayment Penalty
Some mortgages contain a prepayment penalty. Not all loans have one, so review your loan documents or ask your servicer.
Second Liens
HELOCs, second mortgages, and other secured loans can reduce the amount remaining for the seller.
Taxes and Other Liens
Property taxes, judgments, HOA claims, or other title matters can create additional payoffs or closing requirements.
Closing Date Changes
If the closing date changes, the title company may need an updated payoff statement.
What Happens to Money Left in Your Mortgage Escrow Account?
If your mortgage has an escrow account for taxes or insurance, the remaining escrow balance is separate from your sale proceeds. Federal servicing rules generally require the servicer to return remaining escrow funds within 20 days, excluding Saturdays, Sundays, and legal public holidays, after the mortgage is paid in full, subject to applicable exceptions.
Read the CFPB escrow rule →What If the Sale Price Is Not Enough to Pay Off the Mortgage?
If the mortgage and other required payoffs are greater than the amount available from the sale, a normal closing may require the seller to bring additional funds or obtain lender approval for another solution. A short sale is one possible loss-mitigation option when a lender agrees to accept less than the amount owed.
If you are also behind on mortgage payments or facing foreclosure, timing becomes especially important.
Read: How to Sell When You Are Behind on the Mortgage →Continue the Dallas Home-Selling Guide
These related guides can help you work through other amounts and title issues that may affect closing.
Frequently Asked Questions About Selling a House With a Mortgage
Can I sell my Dallas house before the mortgage is paid off?
Yes. In a typical sale, the mortgage is paid from the closing funds and the seller receives the amount remaining after the mortgage and other seller-paid obligations are deducted.
Is my mortgage balance the same as the payoff?
Not always. The payoff can include principal, interest through the payoff date, unpaid fees, and other amounts required to completely satisfy the loan.
Who requests the mortgage payoff when I sell?
You can request a payoff from your mortgage servicer. During a sale, the title or closing company commonly obtains the official payoff after receiving the necessary authorization.
What happens if I also have a HELOC or second mortgage?
A HELOC, second mortgage, or other secured loan may also need to be paid or otherwise resolved as part of the sale. Include those amounts when estimating your likely net proceeds.
What if I owe more than the house will sell for?
You may need to bring money to closing or discuss other options with the mortgage servicer. If the lender agrees to accept less than the full amount owed, the transaction may involve a short sale.
Do I get my mortgage escrow balance back after selling?
In many cases, remaining escrow funds are returned by the servicer after the mortgage is paid in full. Federal servicing rules generally require the refund within 20 days, excluding weekends and legal public holidays, subject to applicable exceptions.
Need Help Selling a Dallas House With a Mortgage?
If you want to sell but are unsure about your payoff, equity, liens, repairs, title issues, or selling options, USA Buying Team can help you review the property and decide what makes sense for your situation.
Talk With USA Buying Team