{"id":44502,"date":"2024-06-07T17:56:13","date_gmt":"2024-06-08T00:56:13","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=44502"},"modified":"2026-04-07T08:40:14","modified_gmt":"2026-04-07T15:40:14","slug":"can-i-sell-my-house-for-less-than-i-owe","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/can-i-sell-my-house-for-less-than-i-owe\/","title":{"rendered":"Can I Sell My House for Less Than I Owe?"},"content":{"rendered":"

Are you struggling with a mortgage that\u2019s more than your home\u2019s worth? You\u2019re not alone. The portion of mortgaged homes considered \u201cseriously underwater\u201d recently ticked upward in 37 states<\/a>. This has some homeowners asking, \u201cCan I sell my house for less than I owe?\u201d<\/p>\n

Whether it’s due to market changes, property damage, or financial difficulties, you want to know your options before you make any permanent decisions. In this post, we\u2019ll look at the impact of negative equity and ways to overcome this financial hurdle if you need to sell your home.<\/p>\n\n\n\n\n\n

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What's Your Home Worth?<\/h3>\n

Request an instant home value estimate to for a ballpark estimation of how much equity you have before selling a house with a mortgage.<\/p>\n \n

\n Get Estimate<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n

Editor\u2019s note: This post is for educational purposes and is not intended to be construed as financial or legal advice. HomeLight always encourages you to reach out to an advisor regarding your own situation.<\/em><\/p>\n

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What is negative equity?<\/h2>\n

Negative equity<\/a> occurs when the value of your home is less than the amount you owe on your mortgage. This situation is often referred to as an underwater mortgage or an upside-down loan. Essentially, if you were to sell your home, the proceeds wouldn\u2019t cover your outstanding mortgage balance, leaving you with a financial shortfall.<\/p>\n

For a home to be considered \u201cseriously underwater\u201d by lender standards, the outstanding balance of the mortgage must be greater than the property\u2019s value by at least 25%<\/a>.<\/p>\n

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Reasons you might sell a house for less than you owe<\/h2>\n

Several scenarios can lead to negative equity, leading you to consider selling your home for less than the mortgage balance:<\/p>\n