Can I Sell My House If I Still Owe the Mortgage in Texas?
Yes, you can sell your house in Texas even if you still owe money on the mortgage. In fact, most homeowners still have a loan when they sell. Whether you’re just considering your options or facing a more urgent situation like foreclosure, this guide will walk you through how selling with a mortgage works — and how to protect your equity in the process.
Selling your house while still paying off a loan is more common than most people realize. But there are a few key things to know if you want the sale to go smoothly and avoid surprises at closing.
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How to Sell a House With a Mortgage in Texas
Selling a house with a mortgage in Texas is simple in most cases. When you close on the sale, the title company will request a loan payoff statement directly from your lender. The exact amount you owe will be paid off first using the proceeds from the sale. Whatever is left after paying the loan, fees, and closing costs becomes your profit.
If your home has gained value since you bought it, you may walk away with a solid chunk of equity. But if you’re behind on payments or the property value has dropped, you’ll need to calculate carefully before accepting an offer.
What If You're Behind on Mortgage Payments in Texas?
You can still sell your house in Texas if you're behind on mortgage payments, but timing is critical. Once you’ve missed a few payments, your lender may begin the foreclosure process. Selling before foreclosure hits your credit is often the smartest move.
If your house has enough equity to cover the remaining mortgage, you can sell it and use the proceeds to bring the loan current and pay it off. But if you're upside down or cutting it close, you’ll need a buyer who can close quickly — without relying on traditional financing.
Cash buyers are often the best solution when you're behind on payments. They don’t wait on lender approvals and can often close in days, not weeks. That speed can make the difference between losing the house or walking away with something in your pocket.
What Happens to the Money When You Sell a House With a Mortgage in Texas?
When you sell your house in Texas while still owing on the mortgage, the sale proceeds first go toward paying off the remaining loan balance. The title company handles this by requesting a payoff statement from your lender, which shows exactly how much is owed, down to the day of closing.
After the mortgage is paid off, the rest of the money goes to you — unless you owe other liens or fees that need to be settled at closing.
If your home sells for more than you owe, you’ll receive the equity that’s left over. But if your home sells for less than your remaining loan balance, you could be in a negative equity situation. In those cases, some sellers choose to bring money to closing, negotiate a short sale with the lender, or work with a cash buyer willing to take over the burden fast.
How a Cash Buyer Can Help When You Still Owe the Mortgage in Texas
Selling your house to a cash buyer in Texas can be a smart move when you still owe money on the mortgage — especially if you need to sell quickly, avoid foreclosure, or don’t want to make repairs. Unlike traditional buyers, a cash buyer doesn't need bank approval, which means you can skip the delays, inspections, and showings.
A local cash buyer can work directly with the title company to get your mortgage payoff amount, calculate a fair offer based on your home’s condition, and close on your timeline. You won't have to worry about repairs, cleaning, or listing your property. The loan is paid off at closing, and if there's equity left, you keep the difference.
Even if you’re behind on payments or in pre-foreclosure, cash buyers can often step in before things escalate. That’s why many Texas homeowners turn to experienced buyers when time and money are tight.
Ready to Sell Your House in Texas If You Still Owe the Mortgage?
If you're asking yourself, “Can I sell my house if I still owe the mortgage in Texas?” — the answer is yes. Whether you’re behind on payments, barely breaking even, or just ready for a change, you have real options.
At TX Home Buying Pros, I work with homeowners across Texas who still owe on their mortgage and need a way out. I buy houses in all conditions — with or without equity — and handle the entire process, including coordinating with the title company and getting your payoff amount.
There’s no need to list the house or fix it up. If you’re looking for a simpler solution, you can sell your house for cash in Texas and skip the usual stress. I’ll give you a fair offer based on your home’s condition, timeline, and goals.
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Helpful Resources for Selling a House With a Mortgage in Texas
If you're thinking about selling your house while you still owe money on the mortgage, these resources can help you better understand your options:
Mortgage Payoff Statement Explained – Investopedia
Learn what a mortgage payoff statement is, how it’s calculated, and why it matters when selling.Texas Foreclosure Process Overview – Texas Law Help
Understand your rights and options if you’re behind on payments or facing foreclosure.How to Handle Negative Equity – CFPB (Consumer Financial Protection Bureau)
If you owe more than your house is worth, this guide explains what steps to consider.HUD Housing Counseling Agencies in Texas – HUD.gov
Free or low-cost help from HUD-approved counselors if you’re in financial distress.