Selling your Atlanta home while you still have a mortgage is more common than you might think. Most homeowners pay off their home loans as part of the sale, so you can absolutely sell a house with a mortgage. The process is straightforward once you understand how lenders, title companies, and buyers all work together at closing.
How mortgages are handled when you sell
When you sell your house, your remaining mortgage balance is paid off during the closing process. The title company or closing attorney works directly with your lender to determine the exact payoff amount, which includes your loan balance and any interest due up to the closing date.
When the sale is finalized, the buyer’s payment first goes to your lender to satisfy that payoff amount. Any remaining funds—after closing costs and fees—are then distributed to you. Once the mortgage is paid, the lender releases its lien on your property, officially transferring ownership to the new buyer.
Equity and payoff: What happens if you owe less or more
If your Atlanta home sells for more than your mortgage balance, the difference is your home equity. You’ll receive that amount as proceeds from the sale.
If your home sells for less than the amount owed, you may be in what’s called an underwater mortgage situation. In this case, some homeowners explore a short sale, which means the lender agrees to accept less than the full balance to help complete the sale. Short sales require lender approval and can take longer to finalize, but they can sometimes help homeowners settle their loan balance and move forward.
What about multiple mortgages or home equity loans?
Many Atlanta homeowners have more than one loan tied to their property, such as a second mortgage or home equity line of credit (HELOC). All these liens must be paid off at closing before the title can transfer. The title company ensures that each lender receives the correct amount in the right order of priority, starting with the primary mortgage.
Speed Matters: Selling When Life Changes Quickly
Sometimes life moves faster than expected—whether it’s a job change, family situation, or simply wanting a fresh start. If you need to sell your house sooner rather than later, understanding your options can help you make the choice that’s right for you.
Traditional listings can take months to close, while a direct buyer like We Buy Ugly Houses®, America’s trusted home buyer, can sometimes close in as little as 3 weeks. Selling your house “as is” and off-market can make the process simpler and more predictable. Even if you decide that a direct sale isn’t the best fit, knowing what’s possible can help you feel more confident about your next step.
We don’t charge commissions or hidden fees, and we pay typical closing costs.†
Frequently Asked Questions
Do I still have to pay my mortgage if I sell my house?
You’ll continue making payments until the closing date. At closing, your lender is paid in full from the sale proceeds, which ends your loan.
What happens if I owe more than my house is worth?
If you’re underwater on your mortgage, you may consider a short sale. Lenders sometimes approve these when selling for less than the remaining balance is the best available option.
How do multiple mortgages affect a home sale?
Each mortgage or lien must be paid off before ownership transfers. The closing agent handles these payments in order of priority.
Will selling my home pay off my mortgage automatically?
Yes. Once the sale closes, the title company or attorney sends the payoff funds directly to your lender.
Thinking about selling your house in Atlanta?
If you need to sell your house while still paying a mortgage, or want to explore an easier, faster way to sell, We Buy Ugly Houses® in Atlanta is here to help. We buy houses off-market in almost any condition and work with you to make the process simple and transparent. If you want to sell your house fast, we can close quickly, sometimes in as little as 3 weeks.
Contact us today for a no-obligation consultation and find out how easy selling your house can be.
This blog is for informational purposes only and should not be considered legal advice.
