How to Sell Your House in Central PA When You Still Have a Mortgage
Here’s a recent conversation from our podcast Central PA Property Talk. In this episode, Brian and Chris from 717 Home Buyers share how homeowners across Lancaster, York, Harrisburg, and all of Central Pennsylvania can sell their homes even while they’re still paying a mortgage — and why waiting too long can cost thousands in carrying costs.
Welcome to Central PA Property Talk
Brian: Welcome back to the Central PA Property Talk podcast. I’m Brian and I’m here with my co-host Chris. We’re your local guides to real estate in Lancaster, York, Harrisburg, and all of Central Pennsylvania.
Chris: Hey everyone! Today we’re tackling a question that hits close to home for a lot of folks in our area — how to sell your house when you’re still making mortgage payments. This question comes straight from 717 Home Buyers in Lancaster, where we see homeowners wrestling with this challenge every day.
The Feeling of Being “Trapped” by Your Mortgage
Brian: Chris, you know this feeling — that sense of being trapped between what you owe and what you need to do.
Chris: Absolutely, Brian. It’s that awful stuck feeling. So, let’s talk about the real problem first. We came across this story on Reddit from a Pennsylvania homeowner that really captures what so many people are going through.
Chris: They said, “I bought my home in 2020 with a 3.2% interest rate and I’ve got $115,000 in equity, but I can’t give that up. If I bought the same house today at 6.75%, my payment would be $500 higher.”
Brian: Right? That’s the trap so many homeowners feel caught in. And here in Central PA, we’re seeing this play out in real time. Rising inventory in Lancaster County, slower sales in York, longer days on market in Harrisburg. People need to move — for work, family, or finances — but they feel handcuffed to their mortgage.
Understanding Carrying Costs
Chris: Exactly. And what they don’t realize is that carrying costs keep piling up every single month. Brian, you keep mentioning carrying costs — what exactly does that mean when it comes to selling a property?
Brian: Great question. When you’re carrying two properties, you’ve got mortgage payments, property taxes, utilities, insurance, and upkeep. In Lebanon County, that could easily be $2,500 to $3,500 a month just in carrying costs. That adds up fast.
Three Main Options for Selling
Chris: So what are the real options here, Brian?
Brian: There are really three main paths. First, you can list with a realtor. The pros are you might get top dollar if the market cooperates, and you can wait. The cons? In our Central PA market, homes are sitting longer, you’re paying carrying costs while you wait, plus realtor commissions — and there’s no guarantee on timing.
Chris: Right. And option two?
Brian: Option two is renting it out. Some people think this solves the problem, but now you’re a landlord. You’ve got tenant issues, maintenance calls, and vacancy risk. If your rental income doesn’t cover your mortgage — which is common today — you’re still paying the difference every month.
Chris: That makes sense. So what’s option three?
Brian: Option three is selling directly to a local cash buyer. Companies like 717 Home Buyers can close in as little as two weeks, pay off your existing mortgage at closing, and eliminate those carrying costs immediately. You get certainty on timing and price — no repairs, no showings, no stress.
Are Cash Offers Always Low?
Chris: Now, Brian, I know some people hear “cash buyer” and think they’re going to get lowballed. Can you address that concern?
Brian: That’s a great question. Yes, cash buyers typically offer less than retail market value — usually around 70–80%. But here’s what people miss: when you list with a realtor, you’re paying 6% commission, 2–3% in closing costs, and possibly thousands in inspection repairs — plus carrying costs while you wait. When you factor in time and expenses, the gap between retail and cash offers often shrinks dramatically.
Lebanon, PA Example
Brian: Let’s talk about a real case we handled in Lebanon, A couple had already purchased their new home but hadn’t sold their old one. They were paying two mortgage payments — about $4,200 a month total. The husband got transferred for work, so they had to move, but their old house just wasn’t selling traditionally.
Chris: $4,200 a month — that’s brutal!
Brian: Exactly. They contacted us on a Tuesday. We made an offer by Thursday and closed two weeks later. Their outstanding mortgage balance was $187,000. We bought the house for $235,000. At closing, we paid off their loan directly to the bank, covered about $3,000 in closing costs, and they walked away with $45,000 cash. No more double payments.
York Short Sale Example
Chris: That Lebanon story is perfect. But let me share another one that might hit closer to home. A single mom in York was going through a divorce. Her house was underwater — she owed more than it was worth.
Brian: Tough spot.
Chris: She owed $165,000, but the home’s market value was about $155,000. She couldn’t afford payments anymore and was facing foreclosure. Even then, we helped by negotiating with her lender to accept a short sale. We bought the home for $155,000, and she walked away without a foreclosure on her credit report. Sometimes it’s not about profit — it’s about stopping the financial bleeding.
Brian: Exactly. Not every home sale is about maximizing dollars. Sometimes it’s about protecting your credit, reducing stress, or just moving on with life. Short sales can be complex, but experienced local buyers handle that process regularly.
When Should You Explore Your Options?
Chris: Before we wrap up — timing. When should someone start exploring these options? A lot of people wait until they’re already in crisis mode.
Brian: The best time to explore your options is the moment you think you might need to move. Don’t wait until you’ve bought your next home, or worse, fallen behind. The earlier you start, the more leverage and options you have.
Practical Next Steps for Homeowners
Chris: For anyone listening and thinking, “This might be me,” what should they do first?
Brian: Step one — get clear on your numbers. Know exactly what you owe and what your monthly carrying costs are. Step two — get a realistic idea of your home’s value, not from Zillow, but from recent sales in your neighborhood. Step three — request a no-obligation cash offer from 717 Home Buyers just to see where you stand. That number gives you a baseline to compare other options against.
Key Takeaways
Brian: You absolutely can sell your house even with an active mortgage — your lender is paid at closing, it’s that simple.
Chris: Every month you wait costs money. If carrying costs are $3,000 a month, waiting six months costs $18,000. That’s real money.
Brian: Local buyers can simplify the process — no repairs, no showings, no waiting.
Chris: And don’t wait until you’re drowning in payments. The earlier you explore, the better your outcome.
Contact 717 Home Buyers
Brian: If you’re facing this situation, pick up the phone and call 717-321-SOLD or visit 717HomeBuyers.com. We’ll show you exactly how the mortgage payoff process works — no pressure, no obligation.
Chris: Thanks for listening to Central PA Property Talk. We bring you real stories, real advice, and honest talk from 717 Home Buyers right here in Lancaster, Pennsylvania. Until next time — remember, you’re not stuck. You just need the right solution.
Related Blog Posts & Helpful Resources
- FSBO vs. Selling to a Professional Home-Buying Company
- Cash Sale vs. Auction in Pennsylvania
- What to Know About Probate in Real Estate
- HUD: Avoiding Foreclosure
- Consumer Financial Protection Bureau: Mortgage Help
- See what other Central PA homeowners are saying — Read our Google Reviews.
FAQs
Can I sell my house if I still owe on my mortgage?
Yes. Your lender is paid directly from the sale proceeds at closing. If the sale price is higher than what you owe, you keep the remaining equity.
What if I owe more than my home is worth?
A short sale might be possible. 717 Home Buyers can work with your lender to negotiate a fair settlement and avoid foreclosure.
Do I need to make repairs before selling?
No. You can sell your house as-is in Central PA — no repairs, cleaning, or open houses needed.
How long does a cash sale take?
Most closings happen in 10–14 days after title verification and mortgage payoff coordination.
What areas does 717 Home Buyers serve?
We buy houses in Lancaster, York, Harrisburg, Lebanon, Reading, and Lititz — across all of Central Pennsylvania.
Last updated: October 27, 2025
Author
Written by Brian & Chris – Local Home Buyers in Central Pennsylvania
Serving Lancaster, York, and Harrisburg homeowners since 2015.
717HomeBuyers.com | Call 717-321-SOLD