Can you sell your home if you owe more than it's worth?

It can be done, but it takes a plan. If the sale price won't cover your loan, you would need to bring money to closing, or ask your lender about a short sale, where the lender agrees to accept less than is owed. Sometimes owners hit a hard stretch, such as a job loss, illness, or a major life change, and have no choice but to sell for less than they owe. My job is to understand your situation, protect you from foreclosure if I can, and help you take the less damaging route. A short sale isn't easy, but it can let an owner walk away from a situation that isn't recoverable. Ask the lender to confirm in writing whether they will waive any remaining balance, and talk to a tax professional and an attorney, because there are credit and tax effects.