How Do I Sell a Home With a Mortgage in Madison or Rankin County?

Many homeowners assume they need to pay off their mortgage before selling. I want to be sure you know that’s usually not the case. Most homes sold in Madison and Rankin County still have an active mortgage at the time of sale.

At the moment, selling a home with a mortgage is routine. The key is understanding how the payoff works and planning around it so there are no surprises.

How the Mortgage Is Handled at Closing

When your home sells, the mortgage is typically paid off at closing, not beforehand. The payoff amount comes from the sale proceeds and is handled through the closing attorney or title company.

This explains why you don’t need to come out of pocket unless the loan balance is higher than the sale price.

What Determines Your Net Proceeds

Several factors affect what you walk away with:

• Current loan balance

• Interest accrued up to closing

• Closing costs

• Any negotiated repairs or concessions

Regarding this, even small differences in timing or terms can change your final numbers.

What to Watch for Before Listing

It helps to:

• Request an estimated payoff early

• Review prepayment penalties, if any

• Confirm whether there are second liens or HELOCs

• Understand how taxes and insurance are handled

This preparation prevents delays once you’re under contract.

When a Mortgage Can Complicate a Sale

A mortgage can create challenges if:

• The home is worth less than the loan balance

• There are multiple liens

• Payments are behind

At the same time, these situations still have options and don’t automatically stop a sale.

Final Thought

Selling a home with a mortgage is common and manageable with the right planning. Please call me if you’d like help reviewing your payoff and understanding what your sale could look like.