icon Search

Can I Sell My House if I'm Behind on Payments?
HomeLight
Real Estate
1 day ago
Img

According to recent data, over six million Americans are behind on their mortgage payments. If you happen to be in a similar situation and want to ease your financial burden, you may be asking, “Can I sell my house if I’m behind on payments?”

In this guide, we’ll walk you through how to sell your home when you’re behind, with strategies tailored to different scenarios. Whether your home’s value exceeds what you owe or you’re underwater, there are paths available that could help you avoid foreclosure and move forward with financial stability.

A quick (and free) way to check your home value

Get a preliminary home value estimate in as little as two minutes. Our tool uses information from multiple sources to give you a range of value based on current market trends.

Check now

Can I sell my house if I’m behind on payments?

Yes, selling your house is possible, even if you’re behind on payments. You have several options depending on your home’s equity and your financial goals. Below is a look at the two most common homeowner scenarios.

1. If the house is worth more than you owe (above water)

If your home is worth more than you owe, a traditional sale may provide a straightforward way to settle the mortgage and regain control of your finances.

Selling option: Traditional home sale

If you have positive equity in your home, selling through a traditional listing could allow you to pay off your mortgage and walk away with any remaining funds. This route offers simplicity and may enable you to meet your obligations fully, potentially even leaving you with extra cash.

Tips for a traditional home sale

  • Price strategically: Consult with a real estate agent who understands your market to set a competitive price that encourages a quick sale. If you are considering the For Sale By Owner (FSBO) route, look at recent sales of similar homes in your neighborhood to price your home right. Keep in mind that FSBO listings tend to sell for less than homes sold with the help of a real estate agent.
  • Consider repairs and appeal: If your budget allows, small updates can make your home more appealing and will help it sell faster. A seasoned agent will also know what not to fix.
  • Evaluate market conditions: Selling in a strong market will yield a faster sale. However, it’s still possible to sell for top dollar even if your home is in a down market.

More From Life Style