Selling a House in Phoenix with a Mortgage: A Simple Seller’s Guide
If you’re a homeowner in Arizona facing financial stress, behind on payments, or simply ready to move on, selling a house in Phoenix with a mortgage might feel overwhelming. But you’re not alone, and you’re not stuck. At Oak Street Properties, we specialize in helping motivated sellers like you navigate the process quickly, clearly, and with confidence.
Whether you’re dealing with foreclosure threats, job relocation, divorce, or inherited property, this guide breaks down everything you need to know to sell your home, even if you still owe money on it.
Why Selling a House in Phoenix with a Mortgage Is Possible
Most Arizona homeowners still have a mortgage when they decide to sell. In fact, the average American stays in their home for just 13 years, far short of a 30-year loan term. The good news? Selling a house in Phoenix is not only doable—it’s common.
Here’s how to make it work for you.
Step-by-Step Guide for Distressed Sellers
1. Talk to Your Lender First
Before listing your home, contact your mortgage lender. Ask for a payoff quote, which shows exactly how much you owe. This figure helps you set a realistic asking price and avoid surprises at closing.
Tip: Review your loan agreement for prepayment penalties. These fees are rare but can affect your final profit.
2. Understand Your Settlement Statement
This document outlines your financial breakdown at closing. It includes your remaining mortgage balance, closing costs, taxes, and agent commissions. If your home’s value doesn’t cover these, you may need to bring cash to the table—or explore other options like a short sale.
3. Set the Right Price
Work with a local real estate expert to price your home competitively. Your goal is to cover your mortgage payoff and selling expenses, while leaving room for your next move.
4. Prepare Your Home for Sale
Even distressed properties benefit from basic prep. Declutter, clean, and make minor repairs. If possible, stage your home to attract buyers quickly.
5. Market Strategically
Effective marketing is key to selling a house with a mortgage. Use online listings, professional photos, virtual tours, and open houses to reach serious buyers fast.
6. Evaluate Offers Carefully
Don’t just chase the highest price. Look for buyers with solid financing, minimal contingencies, and flexible timelines. Your agent can help you weigh the pros and cons of each offer.
7. Close the Sale Smoothly
Once you accept an offer, your agent and lender will guide you through the closing process. Your mortgage will be paid off from the sale proceeds, and ownership will transfer to the buyer.
What If You Have Negative Equity?
If your home is worth less than your mortgage balance, you’re in a “negative equity” situation. While this complicates things, it doesn’t mean you can’t sell. You may qualify for a short sale, where the lender agrees to accept less than what’s owed. Oak Street Properties can help you explore this option and negotiate with your lender.
Why Distressed Sellers Choose Oak Street Properties
We’re not just investors—we’re problem solvers. Our team understands the urgency and emotional weight of selling under pressure. That’s why we offer:
- Fast cash offers with no commissions or hidden fees
- Flexible closing timelines to suit your needs
- Support for any situation, including foreclosure, divorce, or inherited homes
- Local expertise in Phoenix and surrounding Arizona communities
Ready to Sell Your House with a Mortgage?
If you’re ready to move forward, Oak Street Properties is here to help. We buy houses in any condition, and we make the process simple, respectful, and fast. Whether you’re behind on payments or just need a fresh start, we’ll guide you every step of the way.
👉 Get your no-obligation cash offer today. Call (480) 637-5500 or submit your property info online.
Selling a House in Phoenix doesn’t have to be stressful. Let Oak Street Properties be your trusted partner in Arizona.