Can I sell my home if I owe too much?

The answer is YES!  If you qualify, you can sell at "short sale".  What that means is you owe more than the property can sell for, I find a buyer at today's market value and negotiate with the bank to take that price.  You move and owe nothing.  When a person gets behind on their house payments, the tendency is to become an "ostrich", or put your head in the sand the pretend it will go away.  Don't do it, it won't.   A foreclosure can result, that is when the lender takes possession of your house and throws you out.  That impacts your credit for SEVEN years and can result in a deficiency judgement for the difference of what you owe plus attorney fees, court costs. etc,  and what they can sell the house for.  That judgement follows you if you ever want to buy another home and can have a negative impact on other purchases that you may want to pay on time.  The other option, bankruptcy, wipes out all your debt, but you must pay attorney fees and it still impacts your credit for the next SEVEN years and can result in your paying higher interest payments on credit cards, car purchases and even higher insurance rates.  "Short Sale" is the obvious better option.  Choose an expert in that field.  Few have been successful in getting short sales CLOSED.  Most agents have no idea what is involved, and don't want to be bothered.   Generally, the house is sold "as is" with right to inspect, so you would not be responsible for any repairs.  The way it works is you must be qualified, a good agent can make sure you do.  Then you will have to submit documentation to the lender through your agent showing how you got into this situation and you have no choices.   Then your agent negotiates with the bank to take the lower price and let you off the hook.  The impact to your credit is only for ONE year and is reported as "a workout with the lender to pay off your loan".  Even if there is more than one mortgage, it can be accomplished with the right agent.  It is always good to check with your personal accountant and tax attorney if you have any questions.  But don't ignore the threatening calls and letters, consider "short sale".