Most homeowners in Marble Falls still owe money on their mortgage when they decide to sell, and that’s completely normal. It doesn’t block a sale, and you don’t pay off the loan yourself before listing. I’m Robbie English, Broker and REALTOR at Uncommon Highland Lakes Realty, and here’s exactly how the mortgage gets handled at closing, plus the two situations that actually require extra planning.
How the Payoff Actually Works
Once you’re under contract, the title company requests a payoff statement from your mortgage lender. That statement isn’t just your remaining principal; it includes interest that accrues daily up to the closing date, so the number changes slightly depending on when you actually close. At the closing table, the title company sends your lender that payoff amount directly out of the sale proceeds, and your loan is released. Whatever’s left after the payoff, closing costs, and commission is your equity, and that’s what you walk away with.
When the Numbers Don’t Add Up: Short Sales
If your home’s market value is close to or below what you still owe, a normal sale may not generate enough proceeds to cover the payoff and closing costs. That situation is a short sale, and it requires your lender to approve accepting less than the full payoff amount before the sale can close. Short sales take longer, since lender approval alone can add weeks, and they’re a different process than a standard listing from the start. If this might be your situation, the earlier we talk about it, the more options you have.
Selling and Buying at the Same Time
Timing the sale of your current home against the purchase of your next one is where most of the stress actually comes from, not the mortgage itself. A few ways this typically gets bridged:
- A contingent offer on your next home, made subject to your current home selling. This works in a market where sellers will accept that condition.
- A rent-back agreement with your buyer, letting you stay in your sold home for an agreed period (often 30 to 60 days) after closing while you finalize your next move.
- Bridge financing, a short-term loan against your current home’s equity that lets you buy before you sell. It’s worth discussing with a lender if your equity position supports it.
Which option makes sense depends on your equity, your timeline, and how competitive the market is on both ends of the transaction. Planning ahead here saves you from a forced decision later.
What Doesn’t Change
Regardless of your mortgage situation, Texas Property Code §5.008 requires a seller’s disclosure notice on most residential sales, covering known material defects. A mortgage payoff and a disclosure obligation are two entirely separate things, and skipping the second doesn’t speed up the first.
Let’s Look at Your Specific Numbers
If you’re not sure where you stand (what you owe, what your home would likely sell for, and what that leaves you), that’s exactly the conversation to have before listing, not after. Reach out to me directly, or call or text 830-953-5571. I’m Robbie English, Broker and REALTOR at Uncommon Highland Lakes Realty, and I’ll walk through the actual math with you.
