Can I Sell My House if I Am Behind on Payments?
Quick Answer
Yes. Falling behind on mortgage payments does not prevent you from selling your home in Florida. You can sell on the open market, accept a cash offer, or pursue a short sale if you do not have enough equity to cover the mortgage balance. The sale proceeds are used to pay off the mortgage, and any remaining equity is yours.
Why Being Behind Does Not Prevent a Sale
Being behind on mortgage payments makes you delinquent on the loan, but it does not take away your right to sell the property. You still own the home, and ownership carries the right to sell. The mortgage is a lien on the property, meaning it must be satisfied when the property is sold, but it does not prevent the sale itself.
How the Process Works
When you sell a home with an outstanding mortgage, the process works like this:
- You sell the property at whatever price the market supports
- At closing, the mortgage balance is paid off from the sale proceeds
- Any remaining equity after paying the mortgage and selling costs goes to you
- If the sale price does not cover the full mortgage balance, you would need to address the shortfall, potentially through a short sale arrangement with your lender
Your Options
Traditional Listing
List with a licensed real estate agent. This gives you the widest pool of buyers and may achieve the highest sale price. This approach takes time, typically 30 to 90+ days.
Cash Sale
Sell directly to a cash buyer who can close quickly, often in 7 to 14 days. The offer may be below full market value, but the speed and certainty may be worth it depending on your timeline.
Short Sale
If you owe more than the property is worth, a short sale requires your lender's approval to accept less than the full balance. This process takes time but may be preferable to foreclosure.
Will My Mortgage Company Let Me Sell?
Generally, yes. Mortgage companies do not prevent homeowners from selling. In fact, a sale that pays off the mortgage is typically preferable to the lender compared to a foreclosure. However, if you are pursuing a short sale, the lender must approve the terms of the sale.
Questions to Ask
- How much do I owe on the mortgage?
- What is the realistic sale price of my home?
- What will selling costs be?
- Will I have equity after paying off the mortgage and costs?
- Do I need my lender's approval (short sale)?
- What is my timeline?
Ready to Explore Your Options?
We can help you understand what selling looks like for your specific situation.
Schedule Your Free ConsultationFrequently Asked Questions
Can I sell my house if I am behind on payments?
Yes. Being behind on payments does not prevent you from selling.
Will my mortgage company let me sell?
In most cases, yes. A sale that pays off the mortgage is generally preferable to the lender compared to foreclosure.
What if I owe more than the house is worth?
You may need to pursue a short sale with your lender's approval, or address the difference through other means.