Behind on payments? You probably have more options than you think

If you’re reading this late at night, start here: this is far more common than you think, and it is almost certainly not too late yet.

This page is general information, not legal or financial advice. We’re REALTORS®, not attorneys or credit counsellors. Where you need one of those, we’ll say so plainly.

The one thing that matters most

Time. Every option in this situation is wider the earlier you act and narrower the longer you wait. That’s the whole reason to make a phone call today rather than next month — even if the call isn’t to us.

Talk to your lender first

Genuinely, before anything else. Forbearance, loan modification and repayment plans all exist, and asking about them costs nothing. Lenders would generally rather work something out than take a house back.

You can also speak to a HUD-approved housing counsellor free of charge. They are not selling anything.

We’re telling you to do this before we tell you anything about selling, because for a lot of people it’s the better answer.

If you have equity, you have choices

This is the part most people don’t realise. If the house is worth more than you owe, that difference is yours — but a completed foreclosure can consume it. Selling before that point can protect it.

How much time you have depends on where you are in the process, which is exactly the sort of question to put to an attorney early rather than late.

If you owe more than it’s worth

There are still options. A short sale — where the lender agrees to accept less than the balance — is the common one. It takes lender approval and it takes longer than an ordinary sale, which is another reason to start early.

What we can and can’t do

We can tell you quickly what the house is worth, what a cash buyer would pay for it, and how fast each route could realistically move. That’s usually the missing information.

We also buy houses ourselves, including from owners who are behind on payments, and sometimes we bring an offer from an investor we work with instead. Whichever it is, you’ll see what the house would bring listed next to it, so you know what you’re giving up. When we’re the buyer, we tell you in writing, before you sign anything, that we’re licensed real estate agents buying for ourselves. We’d also want you to have an attorney read the contract before you sign. That’s the same advice we give about anyone else, below.

We are not attorneys, we are not credit counsellors, and we won’t pretend otherwise. If what you need is legal advice, we’ll say so and we can point you at people.

Be careful who you call

This situation attracts people who are not on your side. A few general rules worth knowing:

Never sign a deed over to anyone without an attorney reading the paperwork first.
Be wary of anyone asking for money up front to “stop the foreclosure” or “negotiate with your lender.”
Don’t sign anything you haven’t read, and don’t let anyone rush you into signing today.
Keep talking to your lender. Anyone telling you to stop communicating with them is not helping you.

None of that is about any particular company. It’s just what’s worth knowing before you take a call.

Questions people ask

Can I still sell while I’m behind or in foreclosure?

Often yes. The proceeds pay off what’s owed at closing. How much time you have depends on where things stand, so find that out early.

What happens to my credit?

A foreclosure and a sale affect it differently. A credit counsellor can walk you through the specifics for your situation — it’s worth the call.

Will I owe money afterwards?

It depends on the numbers and the agreement with your lender. This is a question for an attorney, and it’s an important one to ask before you commit to anything.

How fast could a sale actually happen?

A cash sale can move in a couple of weeks when everything lines up. A listed sale takes longer but often nets more. We’ll give you both timelines with both numbers.

If you want to talk it through

Call and we’ll tell you what we’d do, what it’s likely to be worth, and whether you need an attorney today or next week. There’s no charge and no obligation to use us afterwards.

Call or text Adam at 314-210-5115 — seven days.