To delay a foreclose on the mortgage, lenders and borrowers can forge a mortgage forbearance agreement. If you try to sell your house while in forbearance, the lender might extend the forbearance agreement. Foreclosures are expensive and can drag out for months. Lenders want their money back fast, and they have neither the time nor the resources for dealing in home sales.
Keep in mind: the forborne amount of your mortgage must be paid back in full upon sale of the home. This comes out of the purchase price of the house.
1. Traditional Listing
A listing agent lists the home on the Multiple Listing Service (MLS) and a brokerage site (if associated with a brokerage) and produces yard signs. They pinpoint the selling price, stage and market the home, show it to prospective buyers, and negotiate offers. It takes at least 70 days to make a sale, and the agent is compensated for their efforts. Compensation is either a small flat fee at the beginning or commission upon sale.
A realtor is different from a listing agent in that a realtor is a member of the NAR. Realtors have more resources than agents to sell a house, but their responsibilities are similar. They help decide the asking price, advertise and show the home, and evaluate offers. Upon the sale of the home, they receive a percentage of the sale price as a commission.
Selling with a realtor takes 70 days or more, and this can be attributed to buyer actions. In the purchase process, buyers have more steps than sellers. These steps include the home inspection, appraisal, and mortgage approval. If a step is delayed or fails, it takes more time to sell the house.
3. Sell It Yourself
Selling a house by yourself is a huge undertaking. You are responsible for the following:
- Determine the market value of your home.
- List the home online.
- Market the home.
- Clean and stage the home.
- Coordinate walkthroughs.
- Negotiate terms of sale.
- Handle the closing.
Without professional help, it can take two to six months to sell the house by yourself. It is also a costly venture, and if you are in forbearance, you may not have the funds to sell a house.
4. Sell As-Is to a Cash Buyer
If you want to make a quick and easy sale without having to market, show, or stage the home, consider selling to an investor. Most investors will make a cash offer on the house regardless of its condition or while it is in forbearance. You can close fast, pay off your loan, and be free of debt.
For information under the CARES Act, Mortgage Forbearance, see What You Need to Know by consumerfinance.gov.