How to Sell a House in Arizona with a Mortgage

How do you sell a house in Arizona with a mortgage?

To sell a house in Arizona with a mortgage, you’ll need to get your loan payoff amount, list the home, accept an offer, and use the proceeds from the sale to pay off your remaining loan at closing. A local expert like Long Le can guide you through each step and help you avoid costly mistakes.

Introduction

Many Arizona homeowners still owe money on their mortgage. The good news? You don’t need to wait until your loan is paid off to sell. Whether you're relocating, upsizing, or simply ready for a change, you can sell your home with an active mortgage. This guide covers what you need to know—and how Long Le can make the process smoother and more profitable.

🔹Understand Your Payoff Amount

Start by contacting your lender to get your official mortgage payoff statement. This tells you exactly how much you’ll owe at the time of closing, including daily interest and fees.

Be aware: Your online mortgage balance is not the same as your official payoff amount.

🔹Estimate Your Net Proceeds

Before listing, it’s smart to calculate how much you’ll make from the sale after paying off your mortgage. Here’s a simplified formula:

Sale Price – (Loan Payoff + Agent Commission + Closing Costs + Repairs) = Net Proceeds

Long Le helps you understand this breakdown clearly. He’ll also provide a custom net sheet based on real-time market conditions in your Arizona neighborhood.

🔹Can You Sell If You’re 'Underwater'?

If your home is worth less than your mortgage balance, you may be in a situation called negative equity. While it’s more rare today, it still happens—especially in parts of Arizona affected by price corrections.

In these cases, Long Le can help you explore options like a short sale or negotiating with your lender.

🔹What Happens at Closing

During closing, your escrow company will use the buyer’s funds to pay off your mortgage in full. Any remaining proceeds go to you. You won’t have to manually pay off your loan—the title company handles it all.

🔹Can You Buy and Sell at the Same Time?

Yes—and many Arizona sellers do. If you’re buying your next home while selling your current one, it’s crucial to coordinate the timelines. Long Le helps clients bridge this process with contingency clauses, flexible closings, and strategies that reduce stress.

For example, some clients in Gilbert used proceeds from their sale to cover the down payment on their new Chandler home—scheduled within 3 days of each other.

🔹Arizona Market Insights

In today’s market, homeowners in cities like Mesa and Queen Creek are averaging $130,000+ in equity, according to April 2025 MLS data. That means many sellers can pay off their mortgage and still walk away with sizable profits.

But timing matters. If rates are high or buyer demand is softening, pricing and marketing your home correctly is even more important—this is where Long Le’s experience comes in.

🔹Common Mistakes to Avoid

Selling a home with a mortgage is doable—but watch out for these missteps:

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🔹Why Work with Long Le?

Long Le is a trusted Arizona real estate expert with deep knowledge of cities like Chandler, Tempe, Scottsdale, and Phoenix. He’s helped many homeowners sell homes with active mortgages and knows how to negotiate the best outcome.

From calculating net proceeds to coordinating with your lender and title company, Long ensures nothing is overlooked. His local insight and honest approach help you make smart financial decisions every step of the way.

Final Thoughts

Yes, you can sell your home in Arizona with a mortgage—and often profit from it. The key is understanding your financial position, planning ahead, and working with someone who knows the local market inside and out. That’s what you get with Long Le.

Thinking about selling your Arizona home but still have a mortgage? Contact Long Le today for a free consultation and personalized strategy to sell smart and stress-free.