Can You Sell a Home with a Mortgage in Lafayette, LA? Charles Ditch REALTOR® Explains.

“Can you sell a home with a mortgage in Lafayette, LA?”

Yes, you can absolutely sell your home in Lafayette, LA, even if you still have a mortgage. This is the most common way homes are sold. At closing, the proceeds from your home sale are used to pay off the remaining mortgage balance, with any leftover funds (your equity) coming directly to you as the seller.

Demystifying One of the Biggest Questions in Real Estate

If you’re thinking about your next move and preparing to sell home in Lafayette, LA, a big question may be looming in your mind: “What about my mortgage?” It’s a common source of confusion for many homeowners. Do you need to save up and pay it off before you can sell? The answer is a clear and simple: No.

My name is Charles Ditch, and as a REALTOR® with Keaty Real Estate, my job is to provide clarity and strategic guidance. As a UL Lafayette graduate and a 14-year Army veteran, I specialize in breaking down complex processes into simple, manageable steps. Let’s demystify the process of selling a home with a mortgage and show you how it works right here in Lafayette.

How It Works: The Magic of the Closing Table

Selling a home with an outstanding mortgage is not an obstacle; it’s the standard operating procedure in real estate. The entire process is designed to handle this seamlessly.

Here’s a step-by-step breakdown of what happens:

1. You Sell Your Home: We work together to price, market, and sell your home for the best possible price. Let’s say you accept an offer for $250,000.
2. We Request a “Payoff Statement”: As we approach your closing date, I will work with the title company to request a payoff statement from your mortgage lender. This document shows the exact amount of money—down to the penny—that is required to pay off your loan on the specific day of closing. This includes the remaining principal balance and any accrued interest.
3. The Closing Day Transaction: This is where it all comes together. The buyer brings their funds (from their loan and down payment) to the title company. The title company, acting as a neutral third party, manages the entire financial transaction.
4. Your Lender Gets Paid First: From the $250,000 sale price, the first thing the title company does is wire the full payoff amount directly to your mortgage lender. Your loan is now officially paid off and closed.
5. Other Costs are Covered: Next, the title company will deduct any other selling costs, such as real estate commissions, title fees, and pro-rated property taxes.
6. You Receive Your Proceeds (Your Equity!): The money that is left over is yours. This is your equity. The title company will either give you a check or wire the funds directly to your bank account.

Example Scenario:

The Key Concept: Understanding Your Equity

The most important factor in this process is your home equity. Equity is the difference between your home’s current market value and the amount you still owe on your mortgage.

Market Value – Mortgage Balance = Your Equity

Thanks to a resilient and appreciating Lafayette real estate market, there’s a very good chance your home is worth significantly more than what you owe. This positive equity is what becomes your profit when you sell. The first step in understanding your potential proceeds is getting an accurate valuation of your home in today’s market.

What If I Don’t Have Much Equity?

In some rare cases, a homeowner might owe more on their mortgage than the home is currently worth. This is known as being “underwater” or having “negative equity,” and the process is called a short sale. Short sales are complex transactions that require the lender’s approval to accept less than what is owed.

This situation is uncommon in our current market, but if you are concerned about it, it is crucial to speak with an experienced REALTOR®. I can provide a confidential consultation to assess your situation and discuss all available options with the honesty and strategic thinking my clients expect.

Your Next Step: Get a Clear Financial Picture

Selling your home with a mortgage is a straightforward and secure process when managed by professionals. There is no need to feel “stuck” in your home just because you haven’t paid off your loan.

The best way to understand your specific situation is to get a clear picture of your potential profits. I can provide you with a Seller’s Net Sheet, which is a personalized estimate of how much money you would walk away with after your mortgage and all selling costs are paid.

If you’re considering selling your home in Lafayette, LA, let’s talk. Contact Charles Ditch, REALTOR® today for a free, no-obligation home valuation and a personalized Seller’s Net Sheet. Let’s uncover your equity and plan your next successful move. Call me at 337-501-9467 or visit my website to get started.

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Disclaimer: The information in this article is for general informational purposes only and is not intended to provide specific legal, financial, or tax advice. Please consult with a licensed professional for advice tailored to your individual situation. All real estate services are provided in strict adherence to the Fair Housing Act and the ethical standards of the National Association of REALTORS®.