Selling a house while being behind on mortgage payments can be challenging, but it is possible with careful planning and communication with your lender.

​Here are the steps to consider when selling a house in this situation:
  1. Contact Your Lender: As soon as you decide to sell your house, reach out to your mortgage lender or loan servicer to inform them of your intention. Let them know about your financial situation and the reason for selling. This communication is crucial because your lender may be willing to work with you to find a solution or provide guidance on the process.
  2. Determine the Sale Price: Work with a real estate agent to determine the fair market value of your home. This will help you set an appropriate asking price that covers your outstanding mortgage balance, closing costs, and any other fees associated with the sale.
  3. Listing and Marketing: List your property for sale with one of our reputable real estate agents. Make sure to market your home effectively to attract potential buyers.
  4. Negotiate Offers: When you receive offers from potential buyers, carefully review and negotiate the terms of the sale. Keep in mind that you may need to negotiate with the buyer to ensure that the sale proceeds cover your mortgage balance and related expenses.
  5. Sale Contract: Once you accept an offer, work with your real estate agent to draft a purchase agreement or contract. This contract will outline the terms of the sale, including the sale price, closing date, and any contingencies.
  6. Open Escrow: The buyer's earnest money deposit will be placed in an escrow account, signifying their commitment to the purchase. Escrow will also handle the transfer of funds during the closing process.
  7. Coordinate with Your Lender: Throughout the sale process, maintain open communication with your lender. Inform them of the progress of the sale and provide any requested documentation. Be prepared to work with them on the payoff amount and closing details.
  8. Payoff Amount: Obtain an accurate payoff amount from your lender, which will include the outstanding mortgage balance, accrued interest, and any additional fees. Ensure that this amount is covered by the sale proceeds.
  9. Close the Sale: On the agreed-upon closing date, sign the necessary documents to transfer ownership of the property to the buyer. The sale proceeds will be used to pay off your mortgage, closing costs, and any other obligations related to the sale.
  10. Remaining Balances: If there is a surplus of funds from the sale after paying off your mortgage and expenses, you will receive the excess. However, if there is a shortfall, you will still be responsible for the remaining balance owed to your lender.
  11. Avoid Foreclosure: The goal of this process is to sell the property and pay off the mortgage to avoid foreclosure. If the sale proceeds do not cover the full mortgage balance, work with your lender to address the shortfall and explore possible solutions, such as a repayment plan or loan modification.

Selling a house while behind on mortgage payments can be a complex process, and it's crucial to work closely with professionals, including a real estate agent, attorney, and your lender, to navigate the situation successfully. Open communication with your lender is key to finding a solution that allows you to sell the property and resolve your mortgage delinquency.

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