The severe economic effects of the COVID-19 pandemic have left many Americans unable to pay for their mortgages, thus requesting mortgage forbearance from their lenders.
Mortgage forbearance is when you ask your lender to allow you to temporarily stop paying for your mortgage, or pay a reduced amount for a specified period.
But this doesn’t mean that you are no longer responsible for paying your mortgage. You will still have to make up for the skipped or reduced payments after the forbearance period.
But one of the main questions asked by borrowers when requesting forbearance is: Can I sell my house while in forbearance? This article seeks to answer that question.
How To Sell A House While In Forbearance
As earlier mentioned, one of the main reasons why you may be forced to request mortgage forbearance is lack of money. Unfortunately, sometimes these financial problems will force you to sell your house while in forbearance.
Keep in mind that when the forbearance period is over, your lender will start adding on late fees and penalties, which will have a major impact on your credit because you will be considered to be falling behind on your payments. To avoid this, it’s possible to consider selling the house.
Putting your house on the market of your own free will is the most effective way to avoid foreclosure and enjoy a more favorable outcome for you and the lender. When you get to this point, your main concern will be whether there are any restrictions on selling a house that is imposed by forbearance.
Fortunately, you may sell your home while it’s in forbearance. But you still owe the lender for all missed payments. Therefore, this amount will be included in any proceeds that you receive from the sale of your house.
When Should You Sell Your House?
So, if you’ve just lost your job, and you are facing foreclosure because you can no longer afford to pay your mortgage, the best thing is to sell the house and allow the lender to deduct the missed payments from the earnings you get from the sale.
You just have to find a reliable and honest real estate company that will help you sell the house quickly and give you the highest cash offer. That way, you can clear the missed mortgage payments and still have enough money left to sort yourself out.
If you are in San Diego, California, you should sell your house through a reliable real estate company like we offer here at Trusted House Buyers, because we don’t charge agent commissions and will take your house the way it is without repairs.
This means that you will make enough money to get yourself out of the current financial predicament.
Even if your house is worth less than what you owe your lender, you can still work with your mortgage lender to do a short sale or deed in lieu of foreclosure. Since the foreclosure process is quite expensive for both the lender and the borrower, most lenders in San Diego prefer to negotiate with their borrowers in order to save time and money.
Lastly, if you decide to sell your house while in forbearance, choose an experienced real estate company and alert them about your status immediately. It’s also important to ensure that your deed professionals get the information about your forbearance immediately to ensure that the closing goes on smoothly.
With Trusted House Buyers, you do not have to run around doing all these things because we will handle everything for you, covering all costs throughout the process.
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