Selling a House When You Are Behind on Payments
Options narrow as the auction date gets closer. Early on there are several; a week before a trustee's sale there are almost none.
Reaching out commits you to nothing and does not affect your loan.
You may have more equity than you think
Being behind does not mean the house is worth nothing to you. If it has appreciated, a sale can cover the loan, the missed payments, and the lender's fees and still leave you with proceeds.
Losing it at auction usually leaves that equity behind.
What we can and cannot do
We can buy the property and pay off what is owed at closing, fast enough to matter in some timelines.
We cannot stop a foreclosure or negotiate with your lender, and we are not a loan-modification service, so be careful with anyone presenting themselves that way. If a sale is not realistic in your remaining time, we will say so.
Consider your other options first
Your lender may offer forbearance, a repayment plan, or a modification, and a HUD-approved housing counselor will walk you through those at no cost.
If keeping the house is achievable, keep it.
Timing dominates everything
Title searches and lender payoff figures take days, not hours. If there is a sale date on the calendar, tell us on the first call so we can plan around it.
Have these ready if you can
- Any notice of default or notice of sale
- Your most recent mortgage statement
- The scheduled auction date, if one is set
- Any second mortgage, HELOC, or lien
- Whether you have applied for a modification
Do not wait until you have all of it. Send the address and we will tell you what we need.
Common questions
A completed foreclosure is among the most damaging entries and lasts years. A sale that pays the loan in full is just a paid-off mortgage. Ask a credit counselor about your situation.
A straightforward sale will not clear the debt, so you would need your lender to agree to a short sale, which is longer and less certain. We will be direct about whether it is worth pursuing.
Not necessarily. If you need time after closing, raise it while we are still discussing terms, since it is far easier to build in than to add later.