Selling Your Home When You Are Behind on Payments

Reasons to sell

Understanding the mortgage 

If you decide to sell your house, you should understand what the sale is contributing to. The mortgage payments must be repaid to the lender. After selling the house, part of the proceeds should pay off the debts you own in terms of the mortgage. When talking with the lender about the home sale, ensure you discuss their expectations and the amount that should go towards your mortgage. In most cases, the lender will offer you the shortest duration to sell the house. So, selling to cash home buyers might be your best bet, as cash sales are fast, and you get the cash upfront. 

How to sell your home if you are behind on payments 

When you are behind in your payments, there are numerous options, like consolidating the loan, mortgage refinancing, and selling the house. 

Most people don’t know it's still possible to see their house if they're behind on mortgage payments. If you are in such a situation, you can sell your house. However, it's vital to understand what this means and how it will impact the proceeds from the sale. 

First, you need to understand that penalties and fees that you should pay aren’t going to vanish because you choose to sell the home. You're accountable for all the payments that you missed, and you must pay all fines and penalties that come with them. The mortgage lenders expect you to offer full payment. 

Can you short-sale the home?

One of the best alternatives that you might want to explore when selling your home that is behind on payment is the short home sale. Nevertheless, you must have approval from the mortgage lender to be eligible for the short sale. However, the lender might not be ready to allow you to do a short sale if you have missed payments. Most of them prefer to get homeowners back on track with their payments. 

When going through the short sale, it does not necessarily mean that the home will sell faster. Nevertheless, it's easy to get buyers interested in the home since the prices are typically moderate. 

Opting for a short sale can have a negative impact on your credit score, but it might not be as bad as going through the home foreclosure procedure. 

Bear in mind that most lenders won't start a foreclosure process until you are up to 90-120 days behind. But this isn’t always the case, so ensure you understand your lender’s policies. 

If you believe you can catch up on your mortgage payments, whether via saving extra cash, selling your assets, or borrowing from family and friends, you can retain your house. Nevertheless, if you don’t see the situation changing for the better faster, then you might want to sell the house. Of course, if you opt to sell, make sure the home is in pristine condition to get the best rates. 

How to prepare your home for sell

However, most people fall behind on their mortgage payments and begin to worry about foreclosure, and they tend to ignore the upkeep and maintenance of the home. In other cases, others will damage the property due to frustration. However, if you intend to sell the home, ensuring it's in perfect shape is important. Many home buyers don’t want to purchase a home if it has damage and needs repair. 

Those who opt to sell and who are behind on their mortgage payments might not have the cash to complete the repairs. There are various things that you can do to improve the curb appeal of the home. This will help you make the house presentable when you are showcasing it to potential home buyers. Additionally, have the house staged properly such that it looks stunning and inviting. 

We buy homes fast

If you are behind on mortgage payments and want to sell your home, kentuckycashhomebuyers.com is here to help you. We will stop the fees and interest from piling up as we buy houses Louisville for cash and close fast. Call us today and fill out the form. We’ll be happy to discuss your situation and offer help.