Key Takeaways
- You can sell your house during forbearance. However, you are still responsible for repaying your home loan.
- If the value of your home is greater than the amount you owe on the loan, you can sell your home and use the profits to cover the payments you missed while in forbearance.
- Refinance your mortgage: You may be able to get a lower mortgage rate or lower monthly payment if you refinance your mortgage.
- While foreclosure is involuntary for the former homeowner, forbearance is a voluntary agreement between the homeowner and the mortgage servicer.
For those facing financial hardship, mortgage forbearance can offer some much-needed relief. However, this relief is temporary. While looking for a more long-term solution, you may ask, “Can I sell my house while in forbearance?”
Thankfully, the answer, whether you’re selling a house in San Diego or a condo in Cleveland, is yes. That said, there are many factors to consider before you decide to sell. Read along to find out when selling a house while in forbearance is a good idea and when to look for alternative options.
Can you sell your house while in forbearance?
Yes, you can sell your house during forbearance. However, you are still responsible for repaying your home loan, so it’s important to consider all your options for lowering your mortgage payment before listing your home for sale.
Consider your equity before selling a house while in forbearance
Your home’s equity is one of the most important factors to consider when considering selling your home while in forbearance. If you have equity, meaning the value of your home is greater than the amount you owe on the loan, you can sell your home and use the profits to cover the payments you missed while in forbearance. If you have an underwater mortgage, meaning you owe more on the loan than the home is worth, selling your home while in forbearance will be more difficult.
If you are underwater on your mortgage, there are two…