Selling a House Before Foreclosure
If you are behind on your mortgage, you still have options, and selling is only one of them. Please look at free help first.
Talk to these people first
- Your mortgage servicer. Ask about repayment plans, forbearance or a loan modification.
- A HUD-approved housing counselor. Counseling is free or low cost. Call 800-569-4287 or visit HUD foreclosure resources.
- An attorney, especially if you have received court papers or a sale date.
How timing can work
Federal rules generally keep servicers from starting foreclosure until a loan is more than 120 days delinquent, with some exceptions. After that, the process differs by state. Florida foreclosures go through the courts, while many Missouri foreclosures do not. Deadlines can move quickly, so please read every notice you receive.
When selling may help
If your home has more value than you owe, a sale may let you pay off the loan and keep what remains. If you owe more than it is worth, ask your servicer about a short sale. Compare your options, including listing with an agent.
Be careful
Be wary of anyone who asks for upfront fees, promises to stop a foreclosure or asks you to sign over your deed without clear explanation. Take any contract, including ours, to someone you trust before signing.
This page is general information, not legal, tax or financial advice. Rules vary by state and city, so please check with a qualified professional about your situation.
Your Options Before a Foreclosure Sale
- Call your lender first. Ask about a repayment plan, loan modification or forbearance. Get answers in writing.
- Talk to a free HUD-approved housing counselor. They can review your options at no cost.
- Sell the house. If you have equity, selling before the sale date may let you pay off the loan and keep the difference.
- Short sale. If you owe more than the house is worth, the lender may accept less than the full payoff.
- Deed in lieu. You give the house back to the lender, sometimes with relocation help.
Timelines Are Different by State
Florida uses a court process, so a foreclosure usually takes months and you will receive court papers. Missouri mostly uses a non-judicial process under a deed of trust, which can move much faster once notices go out. Texas is also usually non-judicial and can move quickly. Read every letter, write down every deadline and call for help early.
Watch Out for Foreclosure Scams
- Never pay an upfront fee to “save” your house.
- Never sign over your deed to someone promising to let you stay and buy it back later.
- Never stop talking to your lender because someone told you to.
When we buy a house in foreclosure, the loan is paid off through the title company at closing. You never send money to us.