Yes. The outstanding mortgage balance is paid off from sale proceeds at closing - your attorney and title company coordinate the payoff with your lender. The mortgage payoff amount is subtracted from the gross sale price as part of your net proceeds calculation. As long as the sale price exceeds your total obligations (mortgage, closing costs, commissions, taxes), you can sell. If the property is underwater, a short sale may be required with lender approval.
This article provides general educational information only. It is not legal, tax, financial, insurance, compliance, housing, brokerage, or professional advice. Rules, tax rates, obligations, enforcement practices, and market conditions vary by property, building, contract, municipality, and jurisdiction, and they change. Sellers should consult a qualified attorney, CPA, or other appropriate professional before making decisions based on their specific situation.
From the seller playbook: Net Proceeds Optimization
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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