Can you sell your house if your mortgage is in forbearance?
Losing a house through foreclosure is the last thing any homeowner wants to do, including homeowners in Dallas-Ft Worth, Texas. However, if you are currently potentially facing this situation, you are not alone. Unexpected life events can happen to anyone, especially during this pandemic. Many homeowners have considered forbearance to avoid foreclosure, but the question is what exactly is forbearance?
What is Mortgage Forbearance?
Forbearance is an agreement between the borrower, you, and the mortgage lender to temporarily pause or lower your mortgage payment for an agreed-upon time frame without recurring late fees. Typically, the initial forbearance plan will last 3 to 6 months. But, if you are not ready to start making payments after the first agreed-upon time, and you need more time to recover financially, you can request an extension. For the most part, your forbearance can be extended up to 12 months.
Due to COVID-19, many homeowners have lost their jobs and couldn’t make mortgage payments for a period of time until they could find another job. So thousands of Texas homeowners have also asked their lenders for relief during this difficult time. One of their best options is mortgage forbearance.
Also Read: Here’s How to Easily Sell Your Dallas-Ft. Worth Property
Selling Your House During Forbearance
While in forbearance, homeowners suspend their mortgage payments, but they aren’t eliminated. This means you have to repay all the missed payments after the forbearance period is up. But this situation may not work for everyone and you may be wondering what other options do you have?
If you are concerned you may be headed to foreclosure because you still don’t have a solution to your financial problems. Or if you just want out of the house because the repayment plan is not going to work for you.
In most cases, you can still sell your home while in forbearance. There isn’t any part of the agreement stating you must stay in the home. But there are a few things you need to know before you sell.
- What are the terms of your repayment plan for your forbearance
- You still have to pay what you owe your lender during the forbearance period
- Any amount you didn’t pay is added to your total payoff including unpaid interest and fees.
- This amount will likely come out of the purchase price of the home. You must also pay off the owed balance remaining on the mortgage; this too comes out of your profit.
If you’re still having financial difficulty and your forbearance agreement is coming to an end, some lenders may consider extending it if you prove that you’re selling the home. Foreclosures are hugely expensive and can drag out for months. Most lenders would much rather work with you to ensure they get the full payoff than go through the foreclosure process where they would receive a much lower percentage of your outstanding balance from a foreclosure. Lenders want their money back fast, and dealing in home sales can exhaust their time and resources.
No Worries Home Sale buys Houses in Forbearance
Selling a house in the Dallas-Ft Worth area can be difficult even in the best circumstances. Adding on mortgage forbearance can make the whole process even more complicated.
The good news is when you sell with No Worries Home Sale, we make the process hassle-free for you. We will make a cash offer on a home regardless of its condition while in forbearance. You can enjoy a quick closing, pay off your loan and delayed payments, and be free of the menacing debt. There are no agents, appraisers, or other third parties involved.
Here is how it works:
- You contact us and request a free, no-obligation consultation.
- We plan a visit to your property at your convenience
- You get a written, fair all-cash offer with no pressure within 24 hours
- If you agree to move forward, we can close as early as 7 days.
Even if you’re down to your last few weeks of forbearance, we can help you get out of your mortgage and avoid foreclosure.
This can help you save your credit score from a severe penalty and provide you with huge stress relief.
If you still have any questions or you want to learn more about our process, please call us at any time or contact us online for your zero-obligation consultation, free of charge.
Phone: 817-668-5788
Email: noworrieshomesale@gmail.com