Selling the Property

Selling your property is one approach homeowners may consider when facing financial

hardship or a pending foreclosure. In some situations, selling the property before a

foreclosure sale is completed can allow the existing mortgage to be paid off through the

sale proceeds, potentially bringing the loan to a resolution without a completed foreclosure.

The feasibility of selling a property depends on several factors, including the property’s

market value, the total amount owed on the mortgage, existing liens, and the timing of any foreclosure proceedings. If the property’s value exceeds the total debt secured by it, a traditional sale may be possible. If the amount owed exceeds the property’s value, lenderapproval may be required, such as in a short sale scenario.

Because foreclosure timelines can be strict, selling a property often requires coordination

among the homeowner, real estate professionals, the lender, and, in some cases, legal or

housing professionals to ensure required deadlines are addressed.

• May allow a homeowner to avoid a completed foreclosure
• Can result in the mortgage being paid off or otherwise resolved through sale proceeds
• Often provides a more controlled and transparent outcome compared to foreclosure
• May result in a less severe credit impact than a completed foreclosure, depending on individual circumstances
• Allows the homeowner to remain involved in the process during the sale
   

• Timing constraints may limit available options as foreclosure deadlines approach
• Property condition, market conditions, and pricing can affect the ability to sell
• Additional liens, HOA balances, or judgments may need to be addressed
• If the loan balance exceeds market value, lender approval may be required
• Sale outcomes and timelines are not guaranteed

Because selling a property involves market conditions, lender requirements, and legal

timelines, some homeowners choose to explore multiple alternatives simultaneously.

Understanding how a sale compares to other foreclosure-related options can help

homeowners prepare for discussions with real estate professionals, lenders, or other

qualified advisors.