Selling Your Home When You Are Behind on Payments
It's frustrating to fall behind on a mortgage payment. Unfortunately, this is a common problem many homeowners have to deal with. At worst times, you may experience foreclosure.
But, there is some good news for homeowners who are behind on their mortgage payments: you may be able to sell your home. Of course, it will take a lot of effort to quickly sell your house when you're behind payments, but it's feasible.
If you're behind on your mortgage payments but want to get back on track financially, you can follow this guide by
We Buy Houses Pennsylvania.
Is It Possible To Sell A Home Despite Mortgage Arrears?
The answer is yes! Even if you're behind on your mortgage, you can still sell your property if you act quickly. However, the more you wait, the more difficult it will be and the less financially beneficial it will be.
Also, your selling options will depend on two factors:
- The amount you owe
- The current value of your house

These factors are well covered under “above water” and “Under water” selling terms.
What’s Under Water and How Does It Affect Your Home Sale?
The term "underwater mortgage" refers to a situation in which the home sale would not generate enough money to cover the outstanding mortgage loan balance.
When this happens, homeowners may wonder if they can sell their home before the bank takes it. Fortunately, you may avoid foreclosure by initiating a short sale or requesting principal forgiveness from your mortgage lender. You'll need to win over your bank or other financial backers.
What does a home short sale mean?
Short sales usually occur when a homeowner is in financial distress and has missed one or more mortgage payments. Foreclosure proceedings may be looming ahead.(1) In other words, it happens when the proceeds from the sale of a house need to be increased to fully pay off the mortgage.
Although it's not ideal, losing your home to foreclosure is preferable because of the lesser impact on your credit. You can stay in the house until the transaction is finalized without dealing with the shame and stress of being evicted.
In practice, you may only sometimes have the opportunity to engage in short selling. This is because the decision will entirely depend on your lender and most won't sanction short sales, only give them less of what you owe them. Therefore, they will hope that you can continue making your house payments.
Besides, you'll need to provide a letter detailing why a short sale makes sense for you. A minority of lenders may try to attach additional requirements before they approve a short sale.
What Does Above Water Mean, And How Does It Affect Your Home Sale?
You are "above water" in your mortgage situation if the worth of your home exceeds the money you owe on it.
There's no need to delay any more; sell the house and put the money toward the mortgage. Doing so wouldn't adversely affect your credit score or prevent you from acquiring a mortgage in the future.
What Options Do I Have If I Don't Want to Sell My House?
Even though selling your home is the most popular response to falling behind on payments, other options could be preferable depending on your circumstances. These options include:
Loan Modification
One way to negotiate a reduced interest rate with your lender is to submit a "loan modification" request. If the interest rate on your loan is lowered, you can afford to make your payments and get your finances back on track. While this may result in lower earnings for the bank, it is preferable to the alternative of foreclosing on a property.
For a loan restructure to go through, you'll need to prove that your financial situation has improved enough to allow you to comfortably afford the modified loan payments at the new interest rate. This is a good option if your regular income isn't enough to meet the higher monthly installments at the standard rate.
You must, however, know that requesting a loan modification can take a long time, and some banks may even delay your application on purpose. But your credit would improve as you make new, cheaper payments.
Contact Pennsylvania Home Buyers
For those in danger of losing their home to foreclosure and needing a quick sale, independent renters like We Buy Houses in Pennsylvania is the best choice.
Their method is straightforward to understand and most of them pay cash for homes. Get in touch with one anytime if you have questions about the speedy home sale process. You may count on the established renters to make a reasonable cash offer within minutes.
Tips to Help Sell Your Home When You’re Behind Mortgage Payments
Many solutions exist to the problem of falling behind on mortgage payments, including debt consolidation and refinancing. Here are a few things to think about when planning to sell your home:
Conduct Proper Research
Don't procrastinate until it feels like there's no way out of the impending foreclosure. If you need to sell your house quickly, you should explore alternative markets. So, take your time, do your homework, and gather as much information as possible.
Find a Reliable Organization
If you're having trouble with your mortgage payments, you can sell your property through the standard sale procedure or contact home buying and selling firms. A reliable home-selling company like we buy houses in Pennsylvania can get your home under contract in few weeks.
Your payment obligations to the agency will end once the sale of your home has closed. Always do your homework before settling on any company selling a home. Know the budget, terms, and conditions of their agreement.
Conclusion
A quick and easy home sale can be accomplished via the Internet regardless of the strategy used. Look into a website designed specifically to facilitate transactions between buyers and sellers in different parts of your locality. You can also meet up with moneylenders eager to help you get a loan for your new house.
Give us a call anytime at 484-484-0971 or fill out this quick form to get started today!
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About the author
Mathew Pezon
Mathew Pezon is the founder and CEO of Pezon Properties, a cash home buying company located in Lehigh Valley, Pennsylvania. With several years of experience in the real estate industry, Mathew has become a specialist in helping homeowners sell their properties quickly and efficiently. He takes pride in providing a hassle-free, transparent, and fair home buying experience to his clients. Mathew is also an active member of his local community and is passionate about giving back. Through his company, he has contributed to various charities and causes.
We are a real estate solutions and investment firm that specializes in helping homeowners get rid of burdensome houses fast. We are investors and problem solvers who can buy your house fast with a fair all cash offer.
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