You can absolutely sell a home if you're behind on the mortgage. In fact, you probably should. Once the house is purchased, some cash will go to pay the mortgage, and whatever is left over will go to you. Selling your home before you go into foreclosure is ideal as foreclosure can affect your credit for years. If you owe more on the property than we can offer, you can inquire with your bank about a short sale. A short sale lets you sell your property for less than you owe!