Selling a home with the mortgage still open.

Yes, you can sell comfortably even with an ongoing mortgage: the debt is settled at the deed. Here’s how.

It is settled at the deed

Having a mortgage does not block the sale. In most cases, at the deed, the buyer’s money is used to repay the outstanding mortgage and cancel the charge; whatever is left goes to the seller. It all happens at the same time, before the notary, guaranteed for both sides.

How much is left? The settlement figure

The first practical step is to ask the bank for the settlement figure: exactly what is needed to close the mortgage on a given date, including any penalties. It is the number that tells you how much remains after the sale.

What if the price doesn’t cover the debt?

The outstanding mortgage can be close to or above the home’s value. It is not a dead end, but it must be managed with a realistic valuation and a plan agreed with the bank. Starting from a correct price matters even more here.

Mortgage assumption

As an alternative, in some cases the buyer can assume the existing mortgage, stepping into the loan. It is less common and depends on the bank’s consent and the loan terms.

FAQ

Can I sell my home if I still have a mortgage?
Yes. Usually the outstanding mortgage is repaid at the deed with the buyer’s money and the charge is cancelled; the surplus goes to the seller, all before the notary.

How do I know how much of the mortgage is left?
By asking the bank for the settlement figure: the exact amount to close the mortgage on a given date, including any penalties.

What if the sale price doesn’t cover the mortgage?
It is managed with a realistic valuation and a plan agreed with the bank. It doesn’t prevent the sale, but requires care on price and strategy.

This article is informational and describes how things generally work. For your specific case the notaio (notary), accountant and qualified professionals are the reference; for legal matters, a lawyer.

Part of the complete guide to selling a home in Sanremo.