Yes, you can sell a DMV house you didn’t finish paying off—but there are important steps and financial details to understand first. Many homeowners in the DMV are sitting on homes they haven’t fully paid for and wonder if selling is even an option.
If you’re in that boat, here’s what you need to know.
What Does It Mean to Sell a House With a Mortgage?
Most people don’t own their homes outright. Selling a home you’re still making mortgage payments on means you’ll use part of the sale proceeds to pay off the remaining balance on your loan.
Let’s say you owe $250,000 on your mortgage and your home sells for $350,000. After closing costs, the lender gets paid the $250K, and you walk away with the rest. If you owe more than the home is worth, that’s a different situation—called selling underwater—but more on that later.
How Does the Process Work?
Here’s a step-by-step breakdown of how to sell a DMV home you haven’t fully paid off:
1. Contact Your Mortgage Lender
Ask for a mortgage payoff statement, which shows exactly how much you owe, including any early payoff fees.
2. Hire a Local Real Estate Agent or Investor
Working with professionals like Brickfront Properties and Construction can make the process smooth. We help homeowners in all kinds of financial situations, including those behind on payments or facing foreclosure.
3. List or Sell Off-Market
You can choose to list on the MLS or go off-market for a quicker sale. Cash buyers, like those working with Brickfront, often purchase homes as-is with the mortgage still in place.
4. Close the Deal
At closing, the mortgage balance is paid from the buyer’s funds, and you receive any leftover equity.
Can You Sell If You’re Behind on Payments?
Absolutely—but time is critical. If you’ve missed mortgage payments, you’ll owe more due to late fees and penalties. In some cases, your lender may have already started foreclosure. Still, you can sell before the process completes.
This is where pre-foreclosure sales come in handy. We go into more detail on this in this helpful guide.
What If You Owe More Than the House Is Worth?
This is called being “underwater” on your mortgage. You can still sell, but you’ll likely need to do a short sale, where your lender agrees to accept less than the full amount owed.
Short sales require approval from your lender and can take longer, but they’re often better than foreclosure.
Brickfront Properties and Construction can guide you through this and even connect you with legal and financial experts.
Can I Sell to Avoid Foreclosure?
Yes! Many homeowners in the DMV sell their homes right before foreclosure to avoid major hits to their credit. Selling to a local cash buyer can speed this up and give you flexibility with moving dates and conditions.
Benefits of Selling With a Mortgage Still in Place
- ✅ Avoid foreclosure and protect your credit
- ✅ Cash out equity if your home has gained value
- ✅ Relocate faster without waiting to pay off the loan
- ✅ Get help from professionals like Brickfront Properties and Construction, who’ve helped hundreds of DMV homeowners sell quickly
Final Thoughts
If you’re asking, “Can I sell my DMV house even if I haven’t finished paying it off?” — the answer is a big YES. Whether you’re current, behind, or underwater on your mortgage, options are available.
Just make sure you:
- Know your payoff amount
- Work with experienced local pros
- Weigh your sale price against your loan balance
Need help figuring it out? The team at Brickfront Properties and Construction is ready to guide you through every step.
