Selling Your Home with an Outstanding Mortgage in Corona Del Mar in 2025

Are you planning to sell your home in Corona Del Mar but still have a mortgage balance remaining? Wondering how the process works and whether it's even possible? You're not alone. Many homeowners in Irvine, Newport Beach, and other parts of Orange County face this exact situation. The good news? Selling your home with an outstanding mortgage is entirely doable—and Monica Carr, a seasoned Realtor and trusted real estate agent in Orange County, is here to guide you every step of the way.

Can You Sell a Home with a Mortgage?

Yes, you can absolutely sell your home even if you still owe money on it. In fact, most homes sold in Orange County today still have an existing mortgage. The key is ensuring that the sale price is high enough to pay off your remaining loan balance and any associated selling costs, including real estate commissions and closing fees.

How the Process Works in 2025

Selling a home with a mortgage involves several steps. Here’s how it typically unfolds:

1. Determine Your Payoff Amount

  • Contact your lender to request a payoff statement, which details the exact amount you owe, including any interest accrued and fees.

  • This amount will be used at closing to satisfy your mortgage.

2. Estimate Your Net Proceeds

  • Work with Monica Carr to understand your net proceeds—the amount you'll walk away with after paying off your mortgage, commissions, and closing costs.

  • Use a seller net sheet or calculator to get a preliminary estimate.

3. List Your Property

  • Monica Carr and her team will help you price your home competitively, prepare it for market, and launch a targeted marketing strategy.

  • This includes professional photography, online exposure, and open houses focused on buyers in the Corona Del Mar and Irvine markets.

4. Accept an Offer and Open Escrow

  • Once you accept an offer, escrow is opened, and your mortgage payoff will be factored into the seller side of the settlement statement.

  • Escrow handles the payoff directly with your lender.

5. Close the Sale

  • At closing, the escrow officer will use the buyer’s funds to pay off your mortgage, cover closing costs, and disburse your net proceeds.

  • You’ll receive any remaining equity via check or wire transfer.

What If Your Mortgage Balance Is Higher Than Your Sale Price?

This is known as being underwater on your mortgage. In this case, you have a few options:

1. Bring Cash to Closing

  • You can bring the difference to the closing table to pay off your mortgage in full.

2. Consider a Short Sale

  • If you can’t afford to cover the gap, a short sale may be an option. This requires lender approval and can impact your credit.

  • Monica Carr can guide you through the short sale process if needed.

3. Rent the Property Instead

  • If selling isn’t financially feasible, renting out your home may buy you more time to build equity before relisting.

Important Costs to Account for When Selling with a Mortgage

Be prepared for the following expenses:

  • Real estate commissions (typically 5–6% of the sale price)

  • Title insurance and escrow fees

  • Transfer taxes and recording fees

  • HOA documents or special assessments (if applicable)

  • Outstanding mortgage balance, including potential prepayment penalties

Working with Monica Carr ensures you get an accurate breakdown of costs and avoid surprises.

Benefits of Working with an Expert Realtor

Selling a home with a mortgage can be complex, but with Monica Carr on your side, you'll gain:

  • Expert Pricing Strategy: Ensure your home sells for top dollar while covering all liabilities.

  • Strong Negotiation Skills: Navigate offers, contingencies, and repairs with confidence.

  • Full Transaction Management: From prep to closing, Monica’s team handles every detail.

Ready to Sell in Corona Del Mar with Confidence?

Selling your home with an outstanding mortgage in 2025 doesn't have to be stressful. With the right guidance, it can be a profitable and seamless experience. Monica Carr and The Monica Carr Real Estate Group are here to help homeowners in Corona Del Mar, Irvine, and across Orange County make informed, empowered decisions.

Contact Monica Carr today to schedule a complimentary consultation and take the first step toward your successful home sale.