Financial hardships may leave you scrambling to sell your house fast, especially if you’re worried about foreclosure. A mortgage forbearance is one of the most common foreclosure alternatives, though some homeowners would still prefer to sell. This begs the question: Can I sell my house while in forbearance?
Explore your options in this helpful guide from our home-buying team at Sell Pittsburgh Now, LLC.
Understanding Mortgage Forbearance
Homeowners could secure different kinds of loans when they buy their dream home. However, unexpected job loss, health issues, or other life events could lead to major financial hardships.
Communicating with your lender about these concerns may lead to a mortgage forbearance. During this time, you’ll see a pause or reduction in your mortgage payments. The purpose of forbearance is to give struggling homeowners different loan repayment options, rather than forgiving their debt.
What You Need To Know About Selling a Home During Forbearance
Ask an expert, “Can I sell my house while in forbearance?” and they’ll tell you that it’s possible, with a few caveats. Most homeowners need their lender’s approval to sell during these circumstances. Lender approval is also mandatory if you have negative equity in the home and need to explore a short sale.
Remember that you’ll still need to pay back missed mortgage payments plus accrued interest. Keep this in mind while you calculate the potential proceeds you’d make on the sale after repaying the loan.
Why Selling a Home During a Forebearance May Be the Right Choice
Suppose you’re an empty-nester living in a large home that is becoming increasingly difficult to care for. If a major health scare hits your finances and you need long-term relief, a mortgage forebearance might not be enough to improve your situation. Selling your house would allow you to reevaluate your finances and find a more suitable living situation.
Some of the biggest benefits of selling amid a mortgage forbearance include:
- Avoiding foreclosure: Multiple missed payments wouldn’t put you at risk of foreclosure if you sell the property.
- Paying off debt with the proceeds: Depending on your unique situation, you might be able to pay off debts and recover financially after selling your home.
- Protecting your credit: Since you’d avoid foreclosure, your credit score won’t take a hit. As a result, you may have an easier time securing future loans.
- Maintaining control: Rather than the lender taking ownership in foreclosure, you’d be able to stay in control and oversee the sale.
Forbearance is only temporary. If your paused mortgage payments are set to resume shortly, a quick home sale with a cash buyer might be your best option.
We’ll Buy Your House for Any Reason and in Any Condition
Can you sell your house while in forbearance? What about a home with code violations? It doesn’t matter what type of property you’re looking to sell. Sell Pittsburgh Now, LLC has a solution.
We buy homes in the Steel City for cash, regardless of condition. Contact our specialists today at (412) 275-5238 to request your fair cash offer.