Can I Sell My Home For Less Then My Mortgage?

Yes, depending on the circumstances you can sell a home for a lower price then it what is owed on the mortgage, however it is very complicated and the final decision lies with the lenders. When this happens it is referred to as a "short sale." In a short sale, the lender sometimes discounts what is owed on the loan to settle the debt. (In some cases though this discount must be paid)

If the original loan has been sold in the secondary market it is often a more difficult situation because the lender needs to get permission from Fannie Mae or Freddie Mac, these are the two major players in the secondary-market.

If there was a LOW or NO down payment on the loan and the loan was accompanied by private mortgage insurance (PMI), the lender must also get the mortgage insurance company that insured the loan involved in the short sale.