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You’re Taking Control—Keep Going
If you’re reading this, you’ve already taken the most important step. Selling your home during mortgage forbearance or pre‑foreclosure can feel overwhelming, but with a thoughtful strategy and steady support, you absolutely can do it.
1. Understand Where You Stand
Are you in forbearance—where mortgage payments are temporarily paused—or in pre‑foreclosure, meaning you’ve received a Notice of Default? Knowing your stage helps you choose the right path forward and avoid unnecessary hurdles. Investopedia’s explanation of pre‑foreclosure is a great starting point.
2. Assess Your Home Equity
Do you owe more on your mortgage than your home is currently worth? Or are you sitting on some equity? If you’re in a positive equity position, a traditional home sale might work best. If you’re “underwater,” options like a short sale or deed-in-lieu could be more realistic. NerdWallet breaks this down with useful clarity.
3. Talk to Your Lender Early—and Often
Yes, this can be intimidating. But calling your lender is key. Tell them you’re planning to sell and request a payoff statement so you know exactly what’s owed, including deferred payments and interest. That transparency helps the sale go smoothly. Real Estate Witch offers guidance on what to ask.
4. Choose the Right Selling Path
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Traditional Sale: Best when you have equity and time. A good real estate agent can help you get market value.
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Cash Sale: Fast and low-drama—but usually at a discount.
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Short Sale: If you owe more than your home value, this allows the lender to accept less than owed—just get approval first.
5. Time Is of the Essence—Especially in Pre‑Foreclosure
Once foreclosure proceedings begin, your window to sell narrows fast. Closing before any auction or legal deadline protects your credit and gives you more control.
6. Be Aware of Credit & Tax Impacts
Choosing to sell—even through a short sale—can help preserve your credit better than letting foreclosure happen. That said, forgiven debt in a short sale may be taxable, so consult a tax professional.
Do’s and Don’ts: Keep It Smart, Calm, and Clear
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Do’s |
Don’ts |
|---|---|
|
Notify your lender right away and request payoff documentation. |
Don’t ignore the situation—delaying makes it worse. |
|
Be honest and open with a qualified real estate professional. |
Don’t go it alone or work with unqualified investors. |
|
Weigh all sale options—traditional, cash, or short sale—against your equity. |
Don’t assume you have no options without confirming. |
|
Stay ahead of deadlines, especially during pre‑foreclosure. |
Don’t wait until the foreclosure process starts. |
|
Consult with a housing counselor or financial advisor when needed. |
Don’t make major decisions without support or clarity. |
Final Thoughts
You’ve already shown resilience by seeking a path forward. Whether it’s a traditional sale, a cash offer, or a short sale, there’s a way to move forward with dignity and confidence. If you’d like help drafting lender emails, reviewing offers, or mapping out your next steps, I’m here to walk through it with you every step of the way.
