Sell Your House Before Foreclosure

Why the date matters more than the price

In most states you keep the right to sell right up until the sale itself. Selling before then is what keeps the equity a foreclosure would otherwise wipe out. The hard part is almost never the price. It is that a buyer with a bank loan needs 30 to 45 days to close, and the sale date does not move to make room for that.

Reinstatement, payoff and what the lender will accept

There are usually two numbers. The reinstatement figure brings the loan current. The payoff closes it completely. A sale pays the payoff at closing, straight from the proceeds, so missed payments, late fees and attorney costs are not something you have to pay up front. Ask your servicer for both figures in writing and send us the payoff. It shows us right away whether a sale leaves money in your pocket. If it does not, we will say so.

If the loan is more than the house is worth

That is not the end of the conversation. A short sale needs the lender's approval and takes longer. Sometimes staying put and working it out with the servicer is better than selling. We will tell you plainly which one fits, rather than string you along. We have no interest in walking through a house when a sale would not help you.

What to have ready

• The payoff figure from your servicer, in writing
• The sale date, if one is set
• Any letters from the servicer's attorney
• Whether anyone is living in the house

We are a cash buyer, not attorneys or accountants. Nothing here is legal or tax advice. For the legal side of a sale, talk with your attorney too.

Questions people ask about this

How late is too late to sell?

Usually you can sell up until the foreclosure sale itself. In practice the last workable day comes earlier, because title work and the payoff take days to arrange. If a sale date is set, tell us the date when we first talk and we will plan back from it.

Will selling hurt my credit like a foreclosure would?

A completed sale that pays the loan off shows as a paid loan. A foreclosure shows as a foreclosure. They are not the same entry, and that difference is the main reason owners sell first.

Do I have to pay the back payments to sell?

No. Missed payments, late fees and most attorney costs are paid out of the sale proceeds at closing, not from your pocket beforehand.

Keep reading

See other situations we help with, or find your local market. Every market page shows its own sale prices, ZIP breakdown and rent data.