Can I Sell My House While in Forbearance?
Being in forbearance can be a lifesaver when you’re in a tight spot. Forbearance can lower or pause your monthly payments. But if you decide you’re ready to sell and get out from under your mortgage, you might be asking yourself, “Can I sell my house while in forbearance?”
The short answer is yes – you can sell your house while in forbearance. If you sell your home while in forbearance, the cost of what you owe will come out of the sale. You’ll need to consider many variables and paths before you decide if selling is the right option for you. One of those paths to selling your house while in forbearance is to sell it for cash for an immediate profit.
Get Your Home Professionally Assessed
If you’re in forbearance, you’re probably already in a tenuous financial position. We’ll take note of measurements, amenities, and features while they’re there. Then we’ll draft a report outlining the value of your home, keeping in mind the value of recently sold homes in the area.
That report will tell you if your home is worth more or less than you owe and help you decide how to move forward.
If Your Home Is Worth More Than You Owe
This is the best situation if you’re hoping to sell your property while it’s in forbearance. If your home has appreciated, you’ll be able to sell it for more than it was worth when you bought it. If you haven’t racked up a lot of debt with your lender while in forbearance, you’ll be able to pay what you owe and walk away with the difference.
If Your Home Is Worth Less Than You Owe
There are many reasons why your home may have depreciated, including other properties in the area being sold for a lower cost. If you owe more on your mortgage than the current market value of your home, you can still sell it.
If it’s worth less than what you owe then it’s probably worth cutting your losses now instead of continuing down the expensive path of selling your house while in forbearance on the real estate market. Selling your house for cash is the best way to do that.
If you aren’t sure that a cash sale is the best option for you, there a few others that you can explore.
Loan Modification
If the value of your home is lower than what you owe your lender, a loan modification may be a better option for you. Unlike refinancing, which replaces your current mortgage with a new loan, a loan modification changes the existing terms. These changes can range from extending the length of your mortgage to creating a fixed rate, but the result will be more manageable monthly payments.
Short Sale
If you’re sure you want to sell your home, you may want to consider a short sale. Eligibility for short sales is a little complicated. To be eligible, you can’t qualify for a loan modification, and you’ll need to get your lender’s approval. You may have to cover the difference between the sales price and what you owe your lender, which may leave you in debt.
A short sale is a last resort and a way to avoid foreclosure. It will significantly impact your credit score and will stick for seven years..
Sell Your House in Forbearance to Quick Fix Real Estate for Cash
Quick Fix Real Estate is a real estate investment firm that focuses on buying homes as-is for a fair cash price while making the sale process easier for homeowners. All you have to do is contact us for a no-obligation assessment, and we will make you a cash offer on the spot. You pick the closing date that works best for you and we’ll bring the check. Skip the hassle and cost of trying to sell your home and contact Quick Fix Real Estate today!
