In this blog, we will discuss the answer of “Can You Sell a House with a Mortgage”.

Selling a house in Tennessee shouldn’t be a big deal. However, you need to understand your position and identify your best options to get the maximum value from the transaction. When you completely own the house you want to sell, it is pretty straightforward. If, on the other hand, you want to sell a house with a mortgage, things can be somewhat complicated. Thankfully, it is possible to sell a house in Tennessee, even if you still owe a mortgage. You just need to understand your equity in the house, the value of the house, the possible closing costs, and how to close a good deal.

Why Sell A House With A Mortgage?

selling a house with a mortgage

There are different reasons you may want to sell a house with a mortgage in Tennessee. If you are moving to a different city or want a bigger or better house, it is understandable that you have to sell your old home, even with a mortgage. Special circumstances like financial distress, inappropriate neighborhood, run down home, bad tenants, job loss, and more may also force your hand to sell. Whatever your reason for selling, it is important that you consider your options carefully and choose what is right for you.

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For a free, no-obligation consultation call: 615-669-1610, or Fill Out This Form For Your FAIR Offer

    First Things First: Find Out How Much Is Left On Your Mortgage

    Getting an accurate estimate of what is left on your mortgage will help you determine the best way to go about selling a house. You will need to contact your lender to enquire about your payoff amount, which is actually different from the loan balance you get in your monthly mortgage statement.

    Ideally, it will include the accrued interests as of the closing date, which will give you an accurate estimate of what the lender has to take from whatever you make from the sale. Payoff quotes are normally given between 10 and 30 days of the closing period. You can also get a payoff quote a few months before selling your house with a mortgage.

    What Happens When You Sell a House with a Mortgage?

    It is expected that when you sell your house with Mortgage in Tennessee, you will have enough equity to pay off the loan, cover the closing costs, and turn a profit. This also means you need to understand your equity in the home and consider that carefully when trying to sell. Once the deal is closed, the fund from the buyer/new owner of the home goes into paying off the remaining loan and taking care of the closing costs.

    Once these are done, you can have access to the rest of the money. This means the mortgage is cleared up, and you’re free to proceed with buying a new home if you qualify. Besides the regular closing costs, the lender may charge a prepayment penalty, which will be deducted from the money realized from the sale. This normally happens when you are selling a home relatively soon after purchasing it.

    You can watch this video to learn “How Do You Sell a House with a Mortgage“.

    Understanding Your Equity

    Equity is your financial stake in the home you want to sell. Ideally, it comes in two forms; home investment equity and earned equity. The home investment equity is the equity gained by your actual financial investment in the house. It includes your original down payment, monthly mortgage payments made over the years, and the actual costs of renovations and upgrades. Earned equity, on the other hand, is the additional profit you see when you sell your home. It is normally a factor of the market conditions and the returns on your investments in the form of upgrades.

    selling a house with a mortgage

    When You Don’t Have Enough Equity to Pay off The Mortgage

    When you don’t own enough equity to cover up the remaining mortgage in your home, you will be described as having negative equity or being underwater. This normally happens when the home has dropped in value since you purchased it. You can wait for the market to improve or sell to get out of the water. In such an instance, you will be required to either bring money to the table to cover the shortfalls or consider a short sale. You will have to get approval from your lender to make the sale since they will get less than they are owed. This will affect your credit score, and can also make it difficult for you to buy a new home.

    Determine Whether You Want To Sell Through a Realtor

    This is one of the most important decisions you need to make once you make up your mind about selling your house with a mortgage. If you decide to sell with a realtor, it is important that you choose a reliable one as early as possible.

    Working with a trustworthy realtor is an option. The realtor’s commissions are merely percentages of the profits you will make from the deal. Or you could choose to work with a homebuyer like Aniya Equity LLC, which will save you a lot of time and stress. Taking this path can potentially help you make more profit from the deal. Our trusted experts will help you make the most important decisions and save you closing costs too. In most instances.

    Sell the Property as the Owner

    If you understand the real estate market and believe you can get the best deal on your own, you can go ahead and sell your home with a mortgage by yourself. As discussed earlier, you need to get an accurate estimate of your payoff amount and your equity in the house. When you are ready, you may need a real estate attorney to help with crafting an agreement. You can sell to a regular buyer or to an investor like Aniya Equity.


    It is possible to sell a house with a mortgage in Tennessee. You will need to understand your unique conditions and the available options if you want to make a sound decision. Working with a reliable realtor can be very helpful.  Selling to an investor as Aniya Equity can save you the most time. However, if you want to do it on your own, take time to understand everything about your mortgage, equity, and the closing costs before selling.

    Do you intend to sell your home in Tennessee? Contact us today at Aniya Equity LLC. We specialize in buying all types of property. We offer you the best deals and instant cash when you sell your home to us. We will save you the stress and time it takes to get your home sold. With us, you are guaranteed to get a hassle-free and enjoyable home selling experience.

    Sell Your House Fast | We Buy Houses

    For a free, no-obligation consultation call: 615-669-1610, or Fill Out This Form For Your FAIR Offer