July 20, 2026
You are upside down on your mortgage when you owe more than the home is likely worth. That can happen because values shifted, repairs are needed, payments were missed, or the loan balance is still high. It is stressful, but you still have choices.
Request a Current Payoff
Your mortgage balance and payoff are not always the same. A payoff statement may include interest, fees, late charges, escrow items, or other costs. Get the exact number before comparing sale options.
Estimate Real Market Value
Online values can be a starting point, but they may not account for repairs, location details, or the condition of the home. Ask for a Realtor estimate, appraisal, or direct as-is offer so you can compare real numbers.
Ask the Lender About Help
If you want to keep the home, ask about loan modification, repayment options, forbearance, or other hardship programs. The earlier you call, the more options may be available.
Consider a Short Sale
A short sale happens when the lender agrees to accept less than the full payoff. It requires lender approval and paperwork, but it may be an option if selling for enough to pay the loan is not realistic.
Compare Bringing Cash to Closing
Some sellers choose to bring money to closing to cover the gap. That may make sense for certain situations, but it is not possible or wise for everyone. Compare this option carefully with your financial advisor or attorney.
Do Not Ignore Foreclosure Warnings
If missed payments are part of the situation, pay close attention to notices and deadlines. Foreclosure timelines can move quickly in Texas, so speak with your lender, a housing counselor, or an attorney as soon as possible.
A direct offer from Mustang Realty Partners can help you understand one possible as-is sale number. From there, you can compare it against payoff, repairs, listing costs, and timing.