A loan monitoring survey from the Mortgage Bankers Association (MBA) shows that around 180,000 U.S. homeowners were in forbearance plans in 2025. If you’re one of these people, you might wonder, “Can I sell my house while in forbearance?”
At The Red Door Guys, we buy houses in Richmond, VA, and have worked with many property owners facing the same situation as you. Learn more about your options for selling during loan forbearance here.
What Is Forbearance?
Forbearance is a temporary agreement where a lender allows a borrower to reduce or pause their mortgage payments for a specific period. It’s designed to provide relief during an illness, loss of work, and other forms of financial hardship.
Keep in mind that forbearance doesn’t mean forgiveness. Once the period ends, you’re still responsible for paying back the missed amounts.
Can You Sell a Property in Mortgage Forbearance?
Selling a home with a mortgage relief agreement is possible, but it requires strict communication with your lender. Many property owners take this route for the following worthwhile advantages:
- Avoiding foreclosure on your credit record
- Settling your mortgage debt entirely
- Relieving financial stress and obligations
- Potentially retaining equity from the sale
- Providing an opportunity to downsize or relocate
Breaking Down the Home Sale Process During the Forbearance Period
At closing, the proceeds from your sale must completely pay off your outstanding principal, interest, and the total amount of missed payments. Here’s how it works.
1. Contact Your Mortgage Servicer
Before listing your home, notify your lender of your intent to sell. Ask for an official payoff statement detailing exactly how much you owe, including the accumulated missed forbearance payments.
2. Determine Your Home Equity
Request a market analysis from a local real estate agent or hire an appraiser to determine your home’s fair market value.
Is the sale price lower than what you owe? You can either look for funds to cover the difference or request a short sale, where your lender agrees to let you sell for less than the remaining mortgage balance. The last resort involves a deed-in-lieu-of-foreclosure arrangement that turns over your home ownership to the lender.
3. Market and Accept an Offer
Proceed with listing, showing, and accepting an offer just like a traditional real estate sale. The buyer’s timeline should align with your lender’s requirements, so maintain a constant line of communication.
4. Coordinate With Title and Escrow
Your title or escrow company will request a final payoff figure from your lender once you’re under contract. After clearing the remaining debt, the lien on the property lifts, and the buyer receives a clear title.
Selling a House During Forbearance With a Cash Home Buyer
“Can I sell my house while in forbearance?” Absolutely, and if you’re looking for a quick and hassle-free option, The Red Door Guys can help. One of our representatives can assess your property, provide you with a no-obligation cash offer, and guide you through the process.
Call (804) 395-7355 or read our blog post on avoiding foreclosure for more useful information.
