Selling a House with a Mortgage in Florida: What You Need to Know

Can you sell a house if you still owe on it? The short answer is yes—and it happens all the time.

In fact, the majority of Florida homeowners still have an active mortgage when they list their property for sale. The process is straightforward when you understand the steps and prepare your numbers ahead of time. In this blog, we’ll break down how to sell your home with a mortgage, how the payoff works, and what to avoid.

1. You Don’t Need to Be Mortgage-Free to Sell

Selling with a mortgage is the norm in Florida. When you sell, your remaining loan balance (plus any accrued interest and fees) is paid off at the closing table using the proceeds from your sale.

It’s important to know that your payoff amount may be slightly higher than the remaining balance shown on your last statement, due to interest and potential prepayment penalties. That’s why your first step is to call your lender and request a mortgage payoff letter.

2. Understanding Your Payoff Statement

A formal payoff letter from your lender includes:

• Your final payoff amount (good through a specific date)
• Per diem interest
• Wire transfer instructions for the title company
• Account and property information

Your closing agent or title company will use this to send funds directly to your lender on closing day.

3. What Happens at Closing?

Here’s what you can expect when selling with a mortgage in Florida:

• Your mortgage is paid off first from the sale proceeds
• Closing costs (including commission, taxes, title fees, etc.) are deducted
• You receive the remaining net proceeds, either by wire or check

You’ll need to bring a valid ID and be ready to sign the seller-side closing documents.

4. What If You Owe More Than the Home Is Worth?

If your home’s market value is lower than your mortgage payoff, you may be “underwater.” This is less common today but can happen.

You have two options:

• Bring the difference to closing in cash
• Request a short sale (requires lender approval and can delay the sale process significantly)

Michael Renick will help you evaluate your equity and guide the best course of action based on your goals and finances.

5. Second Mortgages and HELOCs

If you have a second mortgage or a home equity line of credit (HELOC), those balances must be paid off in full at closing—just like your primary mortgage.

📝 Pro Tip: Notify your real estate agent and title company early if there’s more than one lien or loan. This ensures nothing delays your closing.

6. Can You Still Buy Another Home?

Yes, you can sell and buy simultaneously—even if you still owe on your current home.

Strategies include:

• Using proceeds from your sale as your next down payment
• Exploring bridge loans or HELOCs if your next home closes before your sale
• Planning a same-day close if timing allows

Michael and Team Renick can help structure your sale and purchase timeline for a smooth transition.

7. Avoid These Common Mistakes

• Assuming your mortgage balance is the same as your payoff
• Forgetting about second liens or past-due taxes
• Ignoring closing costs
• Not requesting your payoff statement early

Selling with a mortgage is easy to manage—with the right information and support.

Final Thoughts

If you’re planning to sell your Florida home and still have a mortgage, don’t worry—it’s more common than not. With early planning, the right documents, and a skilled local agent by your side, the process is seamless and stress-free.

Want to know how much equity you’ll walk away with? Call Michael Renick at 941.400.8735 for a custom seller net sheet and step-by-step game plan.

📣 Let’s Talk Strategy

Want a clear breakdown of your numbers and a smarter way to sell? Let’s connect.

• 📞 Call Mike: 941.400.8735
• 📍 Explore our blog series: The Florida Life
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