Many homeowners who sought relief from their mortgage lender during tough financial times wonder, “Can I sell my house while in forbearance?”
Alan at Pyramid Properties buys houses in Memphis and often hears this question from folks ready to move on. The good news is that you can, and understanding how the process works and what it means for your finances can help you find a more secure footing.
Understanding Mortgage Forbearance and What It Means
A mortgage forbearance gives you some breathing room when life throws financial curveballs, like job loss or medical bills. It’s a temporary agreement with your lender to pause or reduce payments for a short time. This option helps homeowners manage short-term hardships and avoid foreclosure, but it does not erase the debt or stop interest from accruing.
At the end of the forbearance period, homeowners have several loan repayment options to catch up, such as spreading payments from when the mortgage payments paused or adjusting the loan terms. If repaying the missed or reduced payments, plus making the future payments, will be too challenging, selling a home during forbearance can be the wise choice.
Selling a Home During Forbearance: What To Expect
Many homeowners who face ongoing struggles ask, “Can I sell my house while in forbearance?” Typically, a forbearance doesn’t block a home sale, but the owner will likely need lender approval before moving forward. This is usually a formality, since most lenders prefer to get paid rather than foreclose on a home.
However, because lenders expect home loans to be paid in full at closing, when you sell the property, the proceeds need to cover what you still owe. If you have built up enough equity, this typically isn’t a problem.
Not every home has plenty of equity, though. If the property value is less than the loan amount, you have fewer options, including a short sale. A short sale means selling the home for less than what you owe, and the lender forgiving the difference.
Why Selling Can Be a Smart Move
Selling a house that you can no longer afford before things worsen often yields the best outcome. Those asking, “Can I sell my house while in forbearance?” are usually looking for clarity and speed. Selling during forbearance can protect credit and eliminate uncertainty.
Selling before the forbearance period ends can also avoid sudden repayment demands, giving homeowners more control and flexibility, especially in changing markets.
Working With a Cash Buyer Can Mean a Faster Sale
Selling a home while in forbearance is not only possible, but it can be empowering when done correctly. The key is understanding mortgages, maintaining communication with lenders, and choosing the right path forward. For many homeowners, the answer to “Can I sell my house while in forbearance?” becomes clear when selling before paying it off allows for a clean financial break.
A direct sale can be one of the simplest foreclosure alternatives available. Cash buyers often close quickly and buy homes as-is. To learn more about selling during forbearance, call Alan at Pyramid Properties at (901) 504-5555 today.