Can I Sell My House If I Owe More Than It’s Worth?

If you’re a Wisconsin homeowner feeling stuck because you owe more on your mortgage than your home is worth, you’re not alone. Many homeowners in Wisconsin face this situation due to rising interest rates, job changes, unexpected expenses, or shifts in the local housing market.

The good news is: yes, you can sell your house even if you’re underwater on your mortgage.
You just need to understand your options and choose the path that makes the most financial sense for you.

This guide will walk you through what it means to owe more than your home’s value, your selling options, and how Sell Now Wisconsin can help you move forward quickly and stress-free.

What Does It Mean to Owe More Than Your House Is Worth?

When you owe more on your mortgage than the current market value of your home, you have negative equity. This is sometimes called being underwater or upside down on your mortgage.

This can happen when:

• Local home values dip
• You purchased with little down payment
• You refinanced into a higher loan amount
• You fell behind on payments
• Unexpected property damage lowered the home’s value

It may feel overwhelming, but negative equity doesn’t prevent you from selling — it simply changes how you sell.

Option 1: Bring Cash to Closing

This is the simplest solution:
If your house sells for less than what you owe, you can pay the difference at closing.

Example:
You owe $240,000
Your home sells for $220,000
You bring $20,000 to closing

This option works best if:

• You have savings available
• You want a clean, fast sale
• You can afford the difference

However, most homeowners exploring their options in Wisconsin don’t want — or can’t afford — to bring cash to closing. If that’s you, keep reading.

Option 2: Request a Short Sale

A short sale is when your lender agrees to accept less than what you owe on the loan.

Benefits of a short sale:

• Helps you avoid foreclosure
• May eliminate the remaining debt
• Allows you to move sooner
• Protects your credit more than foreclosure

Challenges:

• The lender must approve the sale
• You must show financial hardship
• It can take several weeks or months
• Not all lenders approve short sales

Sell Now Wisconsin has experience helping homeowners through the short sale process and can help guide you through lender negotiations.

Option 3: Sell Directly to a Cash Home Buyer in Wisconsin – like us!

When you’re underwater on your mortgage, selling the traditional way can create extra stress:

• Expensive repairs
• Home inspections
• Long waiting periods
• Buyer financing issues
• Realtor commissions

Selling to a local, reputable cash buyer like Sell Now Wisconsin can remove all of those barriers.

We can:

• Buy your house as-is
• Close on your timeline (even in days)
• Work with your lender on a short sale
• Help you avoid foreclosure
• Give you a fair cash offer with no fees or commissions

Even if you owe more than your house is worth, we can walk you through your options and help you make the best choice for your situation.

Option 4: Consider Loan Modification or Refinancing

If your goal is to stay in the home rather than sell, you can explore:

Loan Modification

Your lender may be able to:

• Lower your interest rate
• Extend your loan term
• Adjust your payment
• Add missed payments to your balance

Refinancing

Refinancing is harder with negative equity, but possible in limited situations, especially with specific loan programs.

These options won’t help you sell, but they can help you keep the home.

Option 5: Rent Out the Property

If selling today doesn’t make financial sense and you can’t afford a short sale, renting out the property may be an option.

You might:

• Cover your mortgage
• Ride out the negative equity
• Wait until home values increase in your Wisconsin neighborhood

This works best if you can afford to maintain another place to live.

What About Foreclosure?

Foreclosure has serious long-term consequences:

• Damaged credit
• Difficulty renting or buying later
• Possible deficiency judgments
• Added financial stress

If you’re falling behind on payments, don’t wait. The earlier you take action, the more options you have — including working with Sell Now Wisconsin on a fast, lender-friendly solution.

How Sell Now Wisconsin Helps Homeowners With Negative Equity

We’ve helped homeowners all over Wisconsin who felt stuck, overwhelmed, or trapped by their mortgage. Our team takes a hands-on approach to help you understand all your options — not just selling to us.

Here’s what happens when you reach out:

• We review your mortgage balance and home condition
• We explain your selling options clearly
• We help you explore short sale possibilities
• We give you a fair cash offer
• We support you through lender communication
• We work around your timeline

No pressure. No judgment. Just real solutions for real homeowners.

Yes — you can absolutely sell your house in Wisconsin even if you owe more than it’s worth.
Your options may feel complicated, but you don’t have to navigate them alone.

Your paths include:

• Bringing cash to closing
• Doing a short sale
• Selling to a cash home buyer
• Modifying your loan
• Renting out the home

If you’re unsure what to do next, Sell Now Wisconsin is here to walk you through every option and offer a fast, stress-free solution whenever you’re ready.

Call us today at  414-269-6358 or fill out our quick form for a fair cash offer on your home.