{"id":50106,"date":"2024-11-05T21:41:13","date_gmt":"2024-11-06T05:41:13","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=50106"},"modified":"2025-02-24T09:29:38","modified_gmt":"2025-02-24T17:29:38","slug":"can-i-sell-my-house-while-in-forbearance","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/can-i-sell-my-house-while-in-forbearance\/","title":{"rendered":"Can I Sell My House While in Forbearance?"},"content":{"rendered":"

According to recent data, approximately 135,000 U.S. homeowners<\/a>, or about 0.27%, are in forbearance plans. Of those, about 67% are in forbearance due to temporary hardships caused by job loss, divorce, death, or disability. If you\u2019re among these homeowners, you may be wondering, \u201cCan I sell my house while in forbearance?<\/p>\n

In this post, we\u2019ll explore your options to sell, even if you\u2019re facing financial pressure. Whether your home\u2019s value exceeds what you owe, or you\u2019re underwater on your mortgage, there are paths to avoid foreclosure and move forward with a home sale.<\/p>\n\n\n\n\n\n

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Get an all-cash, no-obligation offer in 24 hours through HomeLight’s Simple Sale platform and close in as few as 7 days. You can also compare the offer with an estimate from a top agent.<\/span><\/p>\n \n

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Editor\u2019s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to reach out to an advisor regarding your own situation.<\/em><\/p>\n

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What is forbearance in real estate?<\/h2>\n

Forbearance<\/a> in real estate is a temporary agreement between you and your lender that allows you to pause or reduce mortgage payments during financial hardship. It\u2019s not a loan forgiveness program; you\u2019ll still need to repay the missed or reduced payments later. The terms of your forbearance agreement can impact your options for managing your home and mortgage.<\/p>\n

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Can I sell my house while in forbearance?<\/h2>\n

Yes, you can sell your house<\/a> while in forbearance. Selling may be a strategic way to avoid foreclosure and settle your mortgage debt. However, you\u2019ll need to consider your home\u2019s equity<\/a> \u2014 how much of the home you actually own versus what you owe on the mortgage.<\/p>\n

Communicating with your lender<\/a> is essential. They need to be aware of your intent to sell, as they may have specific requirements or timelines for resolving your forbearance plan. The sale proceeds can be used to pay off your mortgage, including any missed payments. However, how you proceed with the sale will depend on what your home is worth<\/a> and how much you owe on your mortgage.<\/p>\n

If your house is worth more than what you owe<\/h3>\n

If your home\u2019s market value<\/a> exceeds your outstanding mortgage balance, you have positive equity<\/a>. In this case:<\/p>\n