Yes, you can sell a house with negative equity in Texas, but the sale must address the outstanding mortgage balance and other obligations secured by the property. Depending on your financial situation, you may be able to bring money to closing, negotiate a lender-approved short sale, or explore alternatives that help you keep or eventually sell the property.
For homeowners in McAllen, Edinburg, Mission, Pharr, San Juan, and surrounding Rio Grande Valley communities, discovering that you owe more on your home than it could sell for can make an already difficult situation more stressful.
You may need to relocate, be struggling with mortgage payments, own a house that requires expensive repairs, or simply want to stop paying for a property that no longer fits your needs.
The important thing to understand is that negative equity does not automatically prevent you from selling. It changes how the transaction must be handled.
At EMR Investments LLC, we work with homeowners throughout the Rio Grande Valley who want to understand their property-selling options. While not every property or mortgage situation will qualify for a direct purchase, obtaining a realistic offer can help you evaluate your choices.
In this guide, we’ll explain what negative equity means, how to determine how much you owe, what happens when your home sells for less than the mortgage balance, and which options Texas homeowners should consider before making a decision.
What Does Negative Equity Mean When Selling a House?
Negative equity occurs when the amount you owe on loans secured by your property exceeds the home’s current market value.
This situation is often called having an underwater mortgage or being upside down on your house.
For example, suppose you own a house in McAllen with these financial details:
- Estimated market value: $190,000
- Remaining mortgage principal: $215,000
- Difference: -$25,000
In this example, your mortgage balance exceeds the estimated property value by $25,000.
That is negative equity.
However, the actual amount needed to close a sale could be higher because the mortgage payoff may include accrued interest and other applicable charges. Selling expenses, liens, and contractual adjustments also matter.
A homeowner could also have positive equity on paper but still need money to close if the remaining equity isn’t enough to cover selling expenses.
Before choosing how to sell, calculate your position using realistic numbers.
How Does a Texas Homeowner End Up With Negative Equity?
There are several reasons a property can become worth less than its outstanding mortgage balance.
1. Changes in Property Value
Home values can change because of buyer demand, financing conditions, neighborhood trends, and the condition of individual properties.
If you purchased your house when prices were higher and local market conditions subsequently changed, you may find that the property would not currently sell for enough to cover your loan.
This does not mean every neighborhood in McAllen or the Rio Grande Valley is experiencing falling prices.
Property values vary, and a home’s estimated worth should be based on recent comparable sales rather than broad market assumptions.
2. A Small Down Payment
If you financed most of your purchase price, you may have started with relatively little equity.
During the early years of many mortgage loans, a significant portion of each payment can go toward interest instead of reducing principal.
Consequently, even a modest decline in value may put a highly leveraged property underwater.
3. Additional Loans Against the Property
A second mortgage, home equity loan, or other secured obligation can affect how much money must be paid when the house is sold.
For example, imagine a homeowner in Edinburg owes:
- First mortgage: $165,000
- Second mortgage: $35,000
- Total secured loan balances: $200,000
- Estimated home value: $185,000
The combined loan balances exceed the estimated value by $15,000.
Both lenders’ interests must be addressed before the property can ordinarily transfer with clear title.
4. Deferred Maintenance and Major Repairs
Some Rio Grande Valley homeowners have properties that require costly repairs.
An aging roof, foundation problems, water damage, or major air conditioning issues can reduce the amount buyers are willing to offer.
Imagine a house in Pharr that would be attractive to retail buyers after renovations but currently needs substantial structural work.
The difference between its repaired value and present as-is value may be significant.
If your mortgage balance is based on the home’s former value, the current repair needs could contribute to negative equity.
5. Financial Hardship or Missed Mortgage Payments
Job loss, medical expenses, divorce, or other financial pressures can make it difficult to maintain mortgage payments.
When payments are missed, applicable interest, late charges, and other expenses may increase the amount required to bring the loan current or pay it off.
The longer the financial problem continues, the fewer options may remain available.
If you’re falling behind, contact your mortgage servicer promptly rather than waiting until foreclosure becomes imminent.
Can You Sell Your House for Less Than You Owe in Texas?
Yes, but you cannot assume the mortgage will simply disappear when ownership changes.
A normal real estate closing typically requires liens and mortgages to be satisfied, released, or otherwise addressed through arrangements acceptable to the relevant parties.
When the sale proceeds are insufficient, there are several potential paths.
Option 1: Bring enough additional money to closing to pay the remaining balance and required expenses.
Option 2: Obtain lender approval for a short sale, under which the lender accepts an agreed amount from the transaction and releases its lien.
Option 3: Explore mortgage assistance or other alternatives if selling immediately is not financially practical.
The right approach depends on your actual payoff, the property’s value, your financial resources, and the willingness of your mortgage lender or servicer to approve an arrangement.
A cash buyer cannot independently force your lender to accept less than what you owe.
Option 1: Sell the House and Pay the Difference at Closing
If you have sufficient savings or another legitimate source of funds, you may be able to complete a traditional home sale and contribute the amount needed to satisfy the mortgage.
For example:
| Financial detail | Amount |
|---|---|
| House sale price | $200,000 |
| Mortgage payoff | $218,000 |
| Seller-paid closing expenses | $5,000 |
| Additional cash needed | $23,000 |
These figures are hypothetical and do not represent actual Rio Grande Valley selling costs.
In this example, the homeowner would need approximately $23,000 to complete the transaction under the stated assumptions.
This strategy may be appropriate when:
- You have enough funds to pay the shortfall.
- You need to relocate.
- You prefer to close without requesting mortgage debt forgiveness.
- You want to avoid pursuing a short sale.
- Your financial adviser confirms the transaction is manageable.
However, paying thousands of dollars out of pocket may not be realistic for every homeowner.
If you don’t have the required funds, other alternatives deserve consideration.
Option 2: Request a Short Sale From Your Mortgage Lender
A short sale is one of the most important options to understand when selling a house with negative equity.
A short sale occurs when a lender or mortgage servicer approves the sale of a property for less than the amount owed, subject to the approved transaction terms.
The lender agrees to release its lien so the sale can proceed.
However, a lien release does not necessarily mean the lender has forgiven every dollar of remaining debt.
The agreement must clearly address whether the borrower remains responsible for any deficiency.
Example of a Texas Short Sale
Suppose a homeowner in Mission has the following situation:
- Mortgage payoff: $225,000
- Proposed purchase price: $195,000
- Negotiated transaction expenses: $5,000
- Net amount available toward the mortgage: $190,000
The difference between the mortgage payoff and the amount available to the lender is $35,000.
The homeowner might request that the lender approve the proposed sale and waive the unpaid balance.
The lender may approve the arrangement, request different terms, or decline the request.
An approval should not be assumed until it is documented.
Does the Bank Have to Approve a Short Sale?
Yes. A short sale generally requires approval from the mortgage servicer and other applicable parties.
If additional mortgages or liens exist, those creditors may also need to consent.
A homeowner cannot simply sell the house below the outstanding secured debt and expect all lenders to accept the proceeds.
What Documents Might the Lender Request?
Requirements vary, but a mortgage servicer may ask for:
- A hardship explanation.
- Income and expense information.
- Bank statements.
- Mortgage statements.
- A purchase contract.
- Property valuation information.
- Details about other liens.
- Supporting financial documents.
The lender evaluates the request under its applicable loss-mitigation rules and investor guidelines.
A complete application does not guarantee approval.
For an official explanation, see the Consumer Financial Protection Bureau’s guide to short sales.
Step-by-Step: How to Sell an Underwater House in the Rio Grande Valley
If you’re considering selling a property with negative equity, take the following steps before signing an agreement.
Step 1: Request Your Mortgage Payoff Amount
Contact your mortgage servicer and request an official payoff statement.
Do not rely solely on the balance displayed in your online mortgage account.
The payoff can include accrued interest, applicable fees, and other amounts beyond the principal balance.
If there is a second mortgage or home equity loan, obtain payoff information for that debt too.
Check whether the property has other recorded liens that may affect closing.
Step 2: Determine Your Home’s Realistic Market Value
The next step is estimating what your property could sell for in its current condition.
Review recent comparable sales involving houses similar in:
- Location.
- Size.
- Age.
- Condition.
- Lot characteristics.
- General features.
For example, a property near North 10th Street in McAllen may not be directly comparable to an older house in another part of the city.
A professional appraisal or local market analysis may be useful.
If the property needs repairs, obtain realistic estimates rather than assuming the home would achieve the same price as a fully renovated house.
You can also explore a direct purchase by reviewing EMR Investments LLC’s McAllen cash home-buying services.
Step 3: Calculate the Total Amount Needed to Close
Compare the expected selling price against all applicable obligations.
A practical calculation is:
Estimated shortfall = Mortgage and lien payoffs + seller-paid closing expenses – expected sale proceeds
This gives you a starting estimate of how much additional money may be needed.
Remember that some expenses are negotiable, and the final calculation should come from an itemized settlement estimate.
For more details, read our guide to the real cost of selling a house in the Rio Grande Valley.
Step 4: Contact Your Mortgage Servicer
If the sale won’t generate enough money to pay the secured debts, ask your mortgage servicer about available options.
Explain whether you’re experiencing financial hardship, planning to move, or having difficulty maintaining the property.
Questions worth asking include:
- Am I eligible to apply for a short sale?
- What documents are required?
- Must I already be behind on payments?
- Are there alternatives that would let me keep the home?
- What happens to any remaining loan balance?
- Are there deadlines related to foreclosure?
- Will other lienholders need to approve the sale?
Ask for the responses and applicable requirements in writing.
A HUD-approved housing counselor may be able to help you evaluate alternatives without paying an expensive upfront fee to a third-party short-sale company.
Step 5: Compare Your Selling Options
Before accepting a purchase offer, determine whether the buyer’s terms are suitable for your situation.
A traditional listing may bring a higher purchase price by reaching more retail buyers.
A direct cash offer may reduce certain marketing, repair, or financing complications.
However, neither approach guarantees that the lender will approve an insufficient payoff.
If the property has negative equity, any proposed transaction should be evaluated alongside the mortgage servicer’s requirements.
Step 6: Submit the Short-Sale Request When Necessary
If you’re pursuing a short sale, submit the required application and supporting documents.
A written purchase offer may be part of the lender’s review.
The lender might obtain its own valuation, evaluate the buyer’s offer, and request changes to the proposed transaction.
Do not promise the buyer a guaranteed closing date until the necessary approvals have been obtained.
Step 7: Review the Approval Terms Carefully
If the lender approves a short sale, read the approval letter with a qualified professional.
Confirm:
- The authorized sale price.
- Any required seller contribution.
- Approved closing expenses.
- Required closing deadline.
- Whether the remaining debt will be forgiven.
- Whether the lender reserves collection rights.
- Whether other lienholders have approved the transaction.
An approval that releases the lien but leaves you personally responsible for unpaid debt could create significant financial consequences.
Step 8: Close Through a Reputable Title Company
Once the necessary approvals, contract conditions, and title requirements are satisfied, the transaction can proceed toward closing.
The title company coordinates the settlement documents and applicable payoffs.
Any lender-approved short sale must comply with the terms of the approval.
Review the final settlement statement before signing.
What If You Have Negative Equity but Are Not Behind on Payments?
You do not necessarily have to be delinquent to have negative equity.
A homeowner may make every payment on time and still owe more than the house is worth.
For example, a family in Edinburg may have purchased a house with a small down payment and later discovered that its market value is lower than the outstanding mortgage.
If they can comfortably afford the payments, they may decide to keep the house until their equity position improves.
Possible options include:
- Continuing regular payments.
- Making additional principal payments when financially appropriate.
- Waiting for the loan balance to decrease.
- Reassessing the property’s value periodically.
- Evaluating whether refinancing or a loan modification is available and beneficial.
- Exploring other housing plans if keeping the property is no longer practical.
Mortgage assistance programs and short-sale eligibility requirements vary.
Contact your mortgage servicer rather than assuming that being current automatically qualifies or disqualifies you.
What If You’re Behind on Payments and Facing Foreclosure?
Negative equity becomes more urgent when mortgage payments are overdue.
A homeowner facing foreclosure may have limited time to explore alternatives.
Texas has foreclosure procedures and lender requirements that can move quickly once the applicable notices and deadlines arise.
If you receive a notice of default, notice of sale, or other legal communication, act promptly.
Possible options may include reinstating the loan, requesting loss mitigation, negotiating a short sale, or consulting a qualified attorney about available rights.
A pending short-sale request does not automatically stop a scheduled foreclosure.
You should confirm the actual foreclosure status and any applicable federal or state protections with your mortgage servicer or legal adviser.
For homeowners in Edinburg, our related guide explains how to sell a house before foreclosure in Edinburg, TX.
You can also review the CFPB’s mortgage and foreclosure assistance resources.
Can a Cash Home Buyer Purchase a House With Negative Equity?
Potentially, yes.
A cash buyer can submit an offer for a house even when its mortgage balance exceeds its value.
However, the buyer’s ability to pay cash does not eliminate the seller’s secured debts or override the lender’s rights.
For the transaction to close, the outstanding liens must be appropriately addressed.
There are two common scenarios.
Scenario A: The Seller Pays the Shortfall
If the seller has sufficient funds, the mortgage can potentially be paid in full using the sale proceeds plus the seller’s additional contribution.
The buyer purchases the house under the agreed contract terms.
Scenario B: The Lender Approves a Short Sale
The lender agrees to accept the transaction under specific conditions, allowing the lien to be released.
The remaining debt must be handled according to the written approval.
A legitimate cash buyer should not promise that the mortgage shortfall will disappear without lender involvement.
Why Might Someone Consider a Direct Cash Offer?
Some homeowners prefer a direct offer because they do not want to renovate, list, or repeatedly show their property.
A cash purchase may also avoid the buyer’s mortgage-underwriting process.
However, a direct cash offer may be lower than a retail offer, and lender approval can still delay a short sale.
The better choice depends on the actual numbers and contractual terms.
At EMR Investments LLC, we evaluate properties in McAllen and surrounding Rio Grande Valley communities.
You can learn more about how our home-buying process works and decide whether requesting an offer would be useful for your circumstances.
Negative Equity vs. Foreclosure vs. Short Sale: What’s the Difference?
These terms are often confused, but they describe different situations.
| Term | Meaning | Important consideration |
|---|---|---|
| Negative equity | You owe more than your home is currently worth | Does not automatically mean you are behind on payments |
| Short sale | An approved sale for less than the mortgage debt | Requires applicable lender approval |
| Foreclosure | A legal process to enforce a defaulted mortgage or other qualifying lien | Can result in loss of the property |
| Mortgage modification | Changes to loan terms agreed with the servicer | May help some borrowers retain ownership |
| Deed in lieu of foreclosure | A negotiated transfer of the property to the lender | Requires lender acceptance and appropriate arrangements |
Understanding these differences can help you avoid choosing an unnecessarily expensive or risky option.
For example, a homeowner who has negative equity but can afford the mortgage may not need to sell immediately.
Someone facing a scheduled foreclosure may need professional assistance urgently.
What Happens to the Remaining Mortgage Balance After a Short Sale?
This is one of the most important questions for a Texas homeowner.
If a lender approves the sale of your house for less than the amount owed, you must determine what happens to the unpaid balance.
A lender may agree to waive the remaining debt, or the agreement may contain different terms.
Depending on the loan, contract, and circumstances, a remaining deficiency may expose the borrower to further collection efforts.
Do not assume that the mortgage debt is forgiven simply because the lender releases its lien.
Before completing a short sale:
- Review the written approval.
- Confirm whether the lender waives the deficiency.
- Identify any other mortgages or liens.
- Consult an attorney when the language is unclear.
- Keep copies of all final documents.
If you’re negotiating an agreement involving substantial unpaid debt, professional review can be especially important.
Will Selling a House With Negative Equity Hurt Your Credit?
The effect on your credit depends on how the situation is resolved.
Negative equity alone does not necessarily cause negative credit reporting.
If you continue making payments as agreed, simply owing more than the home’s current value does not automatically mean you have defaulted.
However, missed payments, a short sale, foreclosure, and other mortgage-resolution events may affect your credit differently.
The impact can depend on how the account is reported and your overall credit history.
Before entering into a short sale, ask the lender how the transaction may be reported and consult an appropriate credit or housing professional.
Avoid anyone promising a guaranteed credit-score outcome.
Are There Tax Consequences When a Mortgage Balance Is Forgiven?
There can be.
When a lender cancels or forgives part of a debt, the canceled amount may be treated as taxable income under federal law unless an applicable exclusion or exception applies.
The treatment depends on the type of debt, the borrower’s circumstances, the tax year, and current federal rules.
Texas does not impose an individual state income tax, but that does not eliminate possible federal tax obligations.
If a short sale includes debt forgiveness, speak with a qualified tax professional before accepting the final terms.
You can review IRS Publication 4681 for information about canceled debts, foreclosures, repossessions, and related tax issues.
What If the House Has More Than One Mortgage?
Multiple secured loans can make selling more complicated.
Suppose you own a home in McAllen with:
- First mortgage: $160,000
- Second mortgage: $45,000
- Combined balance: $205,000
- Estimated market value: $185,000
The combined debt exceeds the estimated value by $20,000 before selling expenses.
If you cannot pay the difference, you may need to negotiate with both lenders.
The second mortgage lender may have its own requirements before agreeing to release its lien.
A first mortgage lender’s approval does not automatically bind every other creditor.
You should also investigate any unpaid property taxes, HOA liens, judgment liens, or other recorded claims.
A qualified Texas real estate attorney and title company can help identify which parties must approve or be paid in a proposed sale.
How Do Property Repairs Affect an Underwater Mortgage?
Major repairs can affect both your sale price and the likelihood that a buyer will proceed.
Imagine you own an older home in San Juan with a mortgage payoff of $175,000.
The house might be worth considerably more after substantial renovations, but it currently needs foundation and roof work.
If you don’t have funds available for those repairs, marketing the property to retail buyers may be difficult.
A direct as-is offer could provide a realistic indication of the property’s current marketability.
However, a lower as-is price may also increase the mortgage shortfall.
Before making any decision, compare:
- The value of the home in its current condition.
- Reasonable repair estimates.
- Expected value after repairs.
- Your mortgage payoff.
- The time and resources needed to complete renovations.
- Whether the lender would approve a short sale if necessary.
A repair project is not always financially worthwhile simply because it could increase the property’s sale price.
Can You Sell an Inherited House With Negative Equity?
Potentially, but inherited properties involve additional legal questions.
First, determine whether the estate or heirs have legal authority to sell the property.
Then establish which debts and liens are attached to the house.
An inherited home may have a mortgage balance, unpaid property taxes, maintenance expenses, or other obligations.
If the property is worth less than the secured debt, estate representatives and heirs should obtain appropriate legal advice before making decisions.
The personal liability of heirs for a deceased person’s mortgage is a separate issue from liens secured against the property and depends on the circumstances.
Do not assume that inheriting a house automatically makes you personally responsible for the deceased owner’s entire mortgage.
For related information, read our article about selling a house when the owner dies without a will in McAllen, TX.
Common Mistakes to Avoid When Selling a House With Negative Equity
Mistake 1: Using the Mortgage Statement Instead of a Payoff Quote
Your principal balance and the amount required to pay off your mortgage can differ.
Request the actual payoff information before calculating the expected shortfall.
Mistake 2: Assuming the House Is Worth the Original Purchase Price
Property values change.
Use comparable sales and property-specific information to determine a realistic asking price.
Mistake 3: Signing a Contract Without Understanding Lender Requirements
A standard sale contract may not adequately address the special conditions of a short sale.
Obtain appropriate professional guidance and use documents suitable for the transaction.
Mistake 4: Assuming a Cash Buyer Can Cancel Your Mortgage Debt
A cash buyer cannot unilaterally forgive or release your lender’s claim.
Any shortfall must be properly resolved.
Mistake 5: Ignoring Second Mortgages and Other Liens
Additional creditors can complicate the title process.
Identify all secured obligations before agreeing to a closing timeline.
Mistake 6: Waiting Too Long to Contact the Lender
If you’re already missing payments, delays may limit the alternatives available to you.
Contact the mortgage servicer promptly.
Mistake 7: Assuming Every Short Sale Eliminates Personal Liability
An approved short sale may still leave questions about the unpaid balance.
Get any deficiency waiver in writing.
Mistake 8: Failing to Consider Taxes and Credit
Short sales and debt cancellation can have financial consequences beyond the property sale itself.
Consult the appropriate professionals before proceeding.
How EMR Investments LLC Can Help You Evaluate a Direct Sale
EMR Investments LLC is a local real estate investment company based in Edinburg, Texas, serving homeowners in McAllen, Mission, Pharr, San Juan, and other Rio Grande Valley communities.
If you’re considering selling a property that has become difficult to maintain, we can review the property and determine whether a direct cash purchase may be an option.
Our process generally begins with learning about your property, its condition, and your selling goals.
If the property fits our buying criteria, we can discuss a potential cash offer.
If the home has negative equity, any sale must still address the mortgage lender’s payoff or short-sale requirements.
We cannot guarantee that your lender will approve a short sale or forgive a remaining balance.
What we can do is provide information about a possible direct purchase so you can compare it with your other options.
We also encourage homeowners to consult mortgage servicers, housing counselors, attorneys, and tax professionals when their situation requires specialized assistance.
Learn about our company on the EMR Investments LLC Our Company page or explore homeowner reviews.
Frequently Asked Questions About Selling a House With Negative Equity in Texas
Can I sell a house if I owe more than it’s worth?
Yes. However, the transaction must address the amount owed. You may need to pay the difference, obtain lender approval for a short sale, or explore another appropriate arrangement.
Can I sell my house for less than my mortgage balance in Texas?
Potentially. If the sale proceeds cannot satisfy the mortgage, lender approval or additional funds will generally be required to resolve the debt and release the lien.
Do I have to be behind on payments to qualify for a short sale?
Not necessarily. Eligibility depends on the lender’s requirements, loan type, hardship circumstances, and applicable programs. Contact your mortgage servicer for specific criteria.
Can EMR Investments LLC buy my house if I have negative equity?
EMR Investments LLC can evaluate the property and determine whether a direct purchase is possible. However, a completed transaction would still need to satisfy the relevant mortgage payoff or approved short-sale conditions.
What happens if the bank refuses my short sale?
If the lender declines, you may need to consider additional funds, a revised offer, further negotiations, retaining the property, or available mortgage assistance. A qualified housing counselor can help you evaluate the situation.
Will the lender forgive my remaining mortgage debt?
Not automatically. Debt forgiveness depends on the lender’s written agreement and applicable law. Request a clear explanation of any remaining liability before proceeding.
Can I sell an underwater house without a realtor?
Yes, you may be able to find and negotiate directly with a buyer. However, selling without an agent does not eliminate mortgage obligations or lender-approval requirements.
Does a short sale stop foreclosure in Texas?
Not automatically. Foreclosure timelines and mortgage-servicing rules still matter. Confirm whether the lender has agreed to suspend or postpone any scheduled sale.
How long does a short sale take in Texas?
There is no universal timeline. The process depends on lender review, required documents, valuation, lienholders, approval terms, and closing conditions. Some transactions take considerably longer than ordinary cash sales.
Is negative equity the same as foreclosure?
No. Negative equity means the secured debt exceeds the property’s value. Foreclosure is a separate legal process typically associated with a loan or lien default.
Can I sell a house with a second mortgage and negative equity?
Potentially, but both mortgages must be addressed. If the sale proceeds are insufficient, multiple lenders may need to approve the transaction.
Should I sell or keep my underwater house?
That depends on your financial position, affordability, moving plans, loan terms, and property value. If you can comfortably maintain the mortgage, retaining the home may be preferable to realizing a loss. If payments are becoming unmanageable, explore professional advice and mortgage assistance promptly.
Final Thoughts: Explore Your Options Before Selling an Underwater House in Texas
Discovering that you owe more than your house is worth can be discouraging, especially when you’re already dealing with financial pressure, relocation, or costly property repairs.
But negative equity does not mean you have no options.
Depending on your circumstances, you may be able to pay the shortfall, arrange a lender-approved short sale, continue making payments, or explore another mortgage-resolution strategy.
The first step is understanding your home’s current value, your actual mortgage payoff, and the terms your lender would require for a sale.
If you’re considering selling a house in McAllen, Edinburg, Mission, Pharr, San Juan, or another Rio Grande Valley community, EMR Investments LLC can discuss whether a direct purchase may be appropriate.
Want to Explore a Cash Offer for Your Rio Grande Valley House?
Tell us about your property and we’ll review whether it meets our buying criteria. You can compare a potential direct offer with your other options before deciding how to proceed.
Request a Free, No-Obligation Cash Offer
Or call (956) 899-8942 to discuss your property.
Disclaimer: This article is provided for general educational purposes and is not legal, mortgage-servicing, tax, or financial advice. Short-sale approval, mortgage forgiveness, deficiency liability, and foreclosure protections depend on individual circumstances and applicable laws. Homeowners should consult their mortgage servicer and qualified professionals before making decisions involving secured debt.