Can I Sell My House if I’m Behind on Payments
According to recent data, nearly 4% of U.S. homeowners are considered behind on their mortgage payments, meaning they are at least 90 days past due. If you are among that 4% and want to get out from under your debts, 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.
Editor’s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to reach out to an advisor regarding your own situation.
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 selling by owner (FSBO) be certain to weigh the pros and cons carefully.
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, if your home is in a down market, see our post: 20 tips to sell a house fast in a slow market.
