Can You Sell a Home with a Mortgage in Pasadena, CA?

Can you sell a home with a mortgage in Pasadena, CA?

Answer:
Yes, you can sell a home with a mortgage in Pasadena, CA. The remaining loan balance will be paid off using proceeds from the sale at closing. May Kunka walks you through how it works and what to plan for.

Selling a Home with a Mortgage: The Basics

If you still owe money on your home, you’re not alone. Most Pasadena homeowners sell their properties before the mortgage is fully paid off. As part of the sale process, your remaining loan is paid from the buyer’s funds during closing. The title company or escrow officer coordinates this automatically.

Step-by-Step: How to Sell Your Mortgaged Home in Pasadena

Here’s how the process typically works:

• Contact your mortgage lender for a current payoff statement

• Set a competitive listing price based on Pasadena market trends

• Accept an offer from a buyer

• During escrow, the title company pays off your loan from the buyer’s purchase funds

• Any remaining funds after fees and payoff are your profit

What to Know About Payoff Amounts

Your mortgage balance on your monthly statement isn’t the full payoff amount. Interest continues to accrue, and you may owe additional fees. That’s why it’s important to request an official payoff quote from your lender—especially if you plan to sell in the next 60–90 days.

Will You Make a Profit When Selling in Pasadena?

This depends on your home’s current value, how much equity you’ve built, and the Pasadena market. As of 2025, average home prices in Pasadena are trending upward, with many sellers walking away with six-figure profits—even after paying off their mortgage.

A few factors that affect your net proceeds include:

• Your original down payment

• The amount of your remaining loan

• Home appreciation in your neighborhood (e.g., Madison Heights or Bungalow Heaven)

• Selling costs like agent commission and escrow fees

What If You’re Underwater on Your Mortgage?

If your home’s value is less than your mortgage balance, that’s called being underwater. While rare in Pasadena’s strong market, it can happen. In these cases, you’ll need to bring money to closing or explore a short sale. May Kunka can walk you through options tailored to your financial situation.

Can You Sell While Buying Another Home?

Yes, but timing matters. If you’re buying and selling at the same time, coordinate your sale carefully to avoid overlap. You can use your home equity toward your next down payment, but make sure you talk to a lender early in the process. May Kunka frequently helps clients transition between homes smoothly with aligned closings.

Tips from May Kunka for Selling a Home with a Mortgage

• Get a market valuation before listing to estimate your equity

• Know your loan payoff amount early

• Account for selling costs when planning your move

• Talk to a mortgage broker if you’re buying again

• Use a trusted agent like May Kunka to negotiate strong offers

Final Thoughts: Yes, You Can Sell with a Mortgage

Selling your home with an existing mortgage is completely normal—and in Pasadena, it often works out in your favor thanks to strong property values. Just make sure you understand your numbers, partner with professionals, and move forward with a clear plan.

Need Help Navigating the Sale of Your Mortgaged Home?

Whether you’re moving across town or out of state, May Kunka can help you sell with confidence. She brings years of experience helping Pasadena homeowners close deals quickly and successfully—even with a mortgage in place.