5 Ways To Get Out of Your Mortgage Payments in Houston
Reviewed by Mark Lee
People will often buy a house only to have their needs change as the years go by.
Paying a mortgage on an unwanted house can be incredibly stressful and frustrating.
In this post, we offer 5 ways to get out of your mortgage in Houston so you can move on with your life!
Download our FREE Guide on Stopping Foreclosure!
Need more information on the foreclosure process and How To Stop Foreclosure Houston?
Or, you can always feel free to Contact us anytime if you have questions, want a no hassle Situation Evaluation, or want to just learn more about how we can help homeowners avoid foreclosure or sell their house fast for cash.
Foreclosure Overview - a publication from the Urban Affairs Coalition
Stress of Foreclosure - a publication from the Urban Affairs Coalition
Foreclosure Scams - a publication from the FDIC
Paying an expensive mortgage month in and month out can take its toll.
Especially if you have grown out of the house and are looking for something different.
Below, we offer information to help you get out of your mortgage fast, without having to worry about excessive fees or penalties.
If you have any questions about getting out of your mortgage in Houston, we want to hear from you!
1. Sell Your House Directly for a Fast Cash Exit
The easiest and most convenient way to get out of your mortgage in Houston is to sell your house to a direct buyer. This method is specifically designed for homeowners who do not have the time or the desire to deal with the traditional real estate market. When you work with a professional buyer like Absolute Properties, you bypass the middleman entirely.
The Benefits of a Speed-Based Sale
Selling your house fast in Houston will save you a fortune on holding costs. Every month you continue to own the property, you are responsible for:
Continued utilities (electricity, water, gas)
Routine and emergency property maintenance
Property taxes (which are notoriously high in Harris County)
Homeowners insurance premiums
The mortgage interest itself
A traditional listing can be effective for some, but the process can end up taking several months. During those months, your holding costs eat away at your eventual profit. For those who are looking to sell right away, a direct sale helps to save time and money, giving you the immediate exit you need.
Simplifying the Closing Process
A direct cash sale also reduces closing costs and avoids the common delays associated with mortgage lenders. In a traditional sale, a buyer’s financing can fall through at the last minute, sending you back to square one. A cash buyer has the funds ready, allowing you to close in a matter of days rather than months. This certainty is invaluable when market conditions change or home prices begin to fluctuate.
2. Hire a Houston Real Estate Agent for a Traditional Sale
Many people choose to hire a Houston real estate agent when it is time to sell their home. This is the "standard" route, and for a house that is in pristine condition and located in a high-demand neighborhood, it can yield a high sale price. However, this route is rarely the fastest way to get out of a mortgage.
Understanding the Trade-offs
While an agent can be beneficial in some transactions, in others, the costs and fees aren’t worth it. If you choose this path, you must be prepared for:
Agent Commissions: Typically 6% of the sale price.
Repairs and Staging: Most buyers want a "move-in ready" home, meaning you may have to invest thousands in upgrades before hitting the market.
Showings and Open Houses: You will need to keep the house in "showcase" condition at all times.
When Speed is Your Priority
If you need to get out of your mortgage right away in Houston, you may find that the traditional route is too slow. An agent can end up being very expensive when you factor in the commissions and the months of mortgage payments you’ll make while waiting for the right buyer. If your goal is to eliminate the debt quickly to avoid credit damage or foreclosure, a direct sale often proves more efficient than a traditional listing.
3. Pursue a Loan Modification or Forbearance Agreement
If your goal isn't necessarily to leave the house, but rather to "get out" of the current terms of your mortgage because they are unaffordable, you might look into relief programs offered by your lender. These are often used as a way to avoid foreclosure.
What is a Loan Modification?
A loan modification is a permanent change to your loan terms. The lender may agree to:
Extend the length of the loan (e.g., from 30 years to 40 years).
Reduce the interest rate to a more manageable level.
Roll past-due amounts into the principal balance of the loan.
Forbearance for Temporary Hardship
If you are unable to make your monthly payments temporarily—perhaps due to a medical emergency or short-term unemployment—you may be eligible for a forbearance agreement. With this, the lender agrees to reduce or suspend the payments for a limited amount of time. It is important to remember that forbearance is not debt forgiveness; you will eventually have to pay back the skipped amount, often through a payment plan or at the end of the loan.
For more information on legal rights and foreclosure prevention, you can visit the U.S. Department of Housing and Urban Development (HUD).
4. Convert Your Home Into a Rental Property
While technically you will still be on the hook for the mortgage payment each month, renting the property out allows you to have tenants pay the debt for you. This is an excellent option for those who have a low interest rate and want to build long-term wealth but can no longer live in the home.
Becoming a Houston Landlord
Finding the right tenants can not only help to pay off your mortgage, but you may even be able to collect passive income (cash flow) if the rent exceeds your mortgage, taxes, and insurance. However, keep in mind that being a landlord is a job. You will be responsible for repairs, tenant disputes, and potential vacancies.
Professional Management
If you aren't cut out to be a landlord, you can hire a property management company. A trusted manager can help screen tenants, handle property charges, and keep your credit report clean by ensuring on-time loan payments. While they take a percentage of the rent (usually 8-10%), they handle the "headaches" while your mortgage is being paid down by someone else.
5. Explore a Short Sale to Protect Your Credit
If your home is worth less than what you owe on your mortgage—a situation known as being "underwater"—you may need to pursue a short sale. In a short sale, the lender agrees to accept a sale price that is lower than the remaining loan balance.
Navigating the Short Sale Process
This is a complex process that requires the lender's explicit approval. Lenders are often willing to consider this because a short sale is usually less expensive for them than a full foreclosure proceeding. While it does impact your credit score, the damage is typically less severe and shorter-lived than a foreclosure.
Why Homeowners Choose This Route
A short sale allows you to walk away from the property and the debt without the "stigma" of foreclosure on your record. It requires working closely with a real estate professional who specializes in distressed properties and a lender who is willing to negotiate the deficiency.
For those facing extreme financial distress, the Consumer Financial Protection Bureau (CFPB) provides extensive resources on how to navigate these difficult conversations with your bank.
Frequently Asked Questions About Houston Mortgages
How quickly can I get out of my mortgage?
The timeline depends on the method you choose. A direct sale to a cash buyer can happen in as little as 7 to 14 days. A traditional sale usually takes 60 to 90 days, while loan modifications can take several months of paperwork and trial periods.
Will selling my house for cash hurt my credit?
No. In fact, selling your house for cash is often a way to save your credit. By selling the house and paying off the mortgage before you miss payments or enter foreclosure, you keep your credit score intact.
What if I am already behind on my payments?
If you are already behind, you should act immediately. You can still sell the house or negotiate a modification until the actual date of the foreclosure auction. The sooner you act, the more options you have available.
Can I sell a house that needs major repairs?
Yes. Direct buyers like Absolute Properties buy houses "as-is." You do not need to clean, paint, or fix anything. This is often the best way to get out of a mortgage on a property that has become a "money pit."
Do I need a lawyer to get out of my mortgage?
While not strictly required for a sale, a lawyer can be helpful if you are dealing with complex legal issues like probate or a contested divorce. For a standard sale or direct cash offer, the title company typically handles the necessary legal paperwork.
Take the Next Step Toward Financial Freedom
Paying an expensive mortgage month in and month out can take a massive toll on your mental health and your bank account. Whether you’ve grown out of the house, are facing financial hurdles, or simply want to relocate, you shouldn't feel trapped by a piece of real estate.
Are you ready to get out of your mortgage in Houston? Working with Absolute Properties will help you get a fair price for your house while saving you a fortune in commissions and fees along the way. We can help you navigate your specific situation—whether that’s a direct sale, a short timeline solution to stop foreclosure, or simply getting an unwanted property off your hands.
How Absolute Properties Helps Houston Sellers
Absolute Properties makes it easy for Houston homeowners to sell fast - even when facing challenges like financial difficulties, inherited properties, troublesome tenants, or repairs.
As-is, fast cash offers with clear terms
Many closing costs covered; no realtor commissions in most cases
You choose the closing date (as little as 7 days, case-dependent)
Coordination with experienced title company for a compliant sale process
Call or text: (713) 230-8059
Email address: info@absolutepropertieshtx.com
Share your street address and timeline for a free consultation and a straightforward number no pressure.
Helpful Houston Blog Articles
How To Sell Your House in Houston Without Sinking Any More Money Into It
6 Tips For First Time Home Sellers in Houston
Hiring an Agent Vs. A Direct Sale to Absolute Properties When Selling Your House in Houston
The True Costs of An FSBO Listing for Houston Investors
