Can I Sell My House While In Forbearance In Texas?

Can I Sell My House While In Forbearance

Can I Sell My House While In Forbearance In Texas?

With job losses and financial hardships becoming more common, many have turned to mortgage forbearance as a lifeline. This process allows borrowers to pause or reduce mortgage payments temporarily.

As the real estate market adapts, questions arise about the implications of forbearance on selling homes. Homeowners in forbearance might ponder their ability to sell their house, especially if they’re facing foreclosure or seeking mortgage relief.

This situation has highlighted the importance of understanding the terms set by servicers, the impact on credit scores, and the various relief options available.

Homeowners must navigate these uncertain times with clarity, ensuring they’re informed about their choices, including the possibility of selling their homes under forbearance conditions.

Can I Sell My House While In Forbearance

Homeowners can sell their house while in forbearance. The forbearance agreement provides a temporary pause or reduction in mortgage payments aimed at helping borrowers during financial hardship, such as job loss or a pandemic. 

This relief option, however, does not eliminate the obligation to repay the missed payments. When deciding to sell, follow the steps below:

Communicate With Your Lender or Mortgage Servicer

They can provide specific details regarding your forbearance plan and how selling your home may affect your repayment plan. Typically, the amount owed from the forbearance period, including any missed payments or accumulated interest, must be settled during the sale process.

Understand the Real Estate Market

Homeowners should assess whether the market conditions are favorable for selling. Factors like current interest rates, the demand for homes, and the overall health of the real estate market can significantly impact the sale price and the ease of selling your home.

Work With a Knowledgeable Realtor

A realtor or real estate agent can streamline the process. They can offer insights into the local market, advise on pricing your home effectively, and handle potential negotiations with buyers. 

This expertise is invaluable, especially when navigating the complexities of selling a home during or after a forbearance period.

Consider Financial Implications

The impact on your credit score should be considered. While forbearance may not directly harm your credit score, how the lender reports the missed payments to credit bureaus can vary. 

Selling your home could help avoid foreclosure, which would have a more significant negative impact on your credit report.

Mortgage Forbearance

Mortgage forbearance is a relief measure lenders offer to homeowners facing financial hardship. This agreement is supported by the CARES Act and facilitated by lenders, including Fannie Mae, Freddie Mac, and FHA

It temporarily suspends or reduces mortgage payments, providing breathing room during challenging times, such as a pandemic or job loss. Forbearance plans aim to prevent foreclosure, maintain homeownership, and stabilize the real estate market.

Selling a House in Forbearance

Selling a house in forbearance is a strategic decision influenced by various factors. Homeowners must navigate the process carefully, keeping in mind the end goal: to alleviate financial stress while transitioning from their current situation.

Communication with Your Servicer

It is critical to initiate a conversation with your mortgage servicer or lender. They will outline the terms of your forbearance agreement and how a sale will impact the remaining mortgage balance. 

This step clarifies whether the sale covers the deferred amount and any additional fees accrued during the forbearance period.

Market Timing

Timing the sale correctly is pivotal. Homeowners should assess the real estate market’s condition, aiming to sell when market conditions are favorable. Factors such as buyer demand, housing inventory levels, and interest rates influence the sale’s success. 

A well-timed sale can maximize returns, potentially covering the mortgage balance and the forbearance amount.

Professional Guidance

Engaging a real estate agent or realtor experienced in forbearance sales can offer significant advantages. These professionals navigate market dynamics, advise on pricing strategies, and facilitate negotiations with potential buyers. 

Their expertise ensures the property is marketed effectively, reaching buyers interested in properties like yours.

Understanding the Financial Outcome

Homeowners should prepare for various financial outcomes. The excess funds contribute to the homeowner’s next steps if the sale price exceeds the mortgage balance, including the forbearance amount. 

However, if the sale price falls short, exploring options like a short sale or negotiating with the lender may be necessary.

Can You Sell Your House While You're In Forbearance?

Alternative Options to Selling While in Forbearance

As a Homeowner in forbearance, you have several alternatives to selling your property. These options can provide financial relief while allowing you to retain your home. However, consider their long-term goals and financial capacity before deciding on the best action.

Loan Modification

A loan modification changes the terms of your existing home loan. Lenders may adjust the interest rate, extend the loan term, or alter monthly mortgage payments. This option aims to make payments more manageable for the homeowner post-forbearance.


If homeowners have regained financial stability, refinancing can offer a fresh start. This process replaces your current mortgage with a new loan, potentially at a lower interest rate. 

Refinancing can reduce monthly mortgage payments and help manage the financial impact of missed payments during forbearance.

Repayment Plan

Lenders may offer a repayment plan for the amount owed during the forbearance period. This plan adds some missed payments to your regular monthly payments until the deferred amount is fully repaid. It’s a structured way to catch up without the immediate financial strain.

Forbearance Extension

If circumstances haven’t improved, requesting an extension of the forbearance period might be viable. Some lenders are willing to extend forbearance agreements, offering additional time for homeowners to stabilize their financial situation. This extension can prevent foreclosure and give homeowners more time to explore other options.

Partial Claim or Lump Sum Payment

A partial claim might be an option for loans backed by government agencies like FHA, VA, or USDA. This involves a second loan for the forbearance amount, payable when the first mortgage is paid off or the home is sold. 

Alternatively, if homeowners can afford it, a lump sum payment to cover the forbearance amount is another route to reinstating the loan.

Can You Buy A House After Forbearance?

Yes, buying a house after forbearance is possible. The journey from forbearance to homeownership involves a few critical steps to ensure you’re prepared for a new mortgage.

First, focus on rebuilding your credit score. Forbearance may not directly hurt your credit, but missed payments reported to credit bureaus can. 

Regularly check your credit report and address any inaccuracies. Improving your credit score enhances your chances of mortgage approval and favorable interest rates.

Then, demonstrate financial stability. Lenders want to see consistent income and a healthy debt-to-income ratio. Post-forbearance, work on reducing debts and saving for a down payment. Solid financial footing reassures lenders of your ability to manage mortgage payments.

Be aware of potential waiting periods. Some lenders require a certain time frame after forbearance before you can qualify for a new mortgage. This period allows you to prove financial recovery and reliability.

Communicate openly with potential lenders. Explain the circumstances that led to forbearance and how you’ve overcome them. Honesty about your financial history and recovery can help build trust with lenders.

Finally, explore different loan options. Government-backed loans like those from FHA, VA, or USDA might have more flexible guidelines post-forbearance. Comparing these options can lead to finding the best mortgage fit for your current situation.

Pros and Cons of Selling a House in Forbearance

Selling a house in forbearance offers a pathway out of financial hardship but requires careful consideration of the potential drawbacks. Weighing the pros and cons can help homeowners make informed decisions that align with their financial goals and circumstances.


  • Avoid Foreclosure: Selling can prevent the legal and financial challenges of foreclosure. It helps protect your credit score from the severe impact a foreclosure could have.
  • Market Advantage: If the real estate market is strong, selling your house might fetch a good price, potentially covering your mortgage balance and forbearance amount.
  • Financial Relief: Completing a sale provides immediate financial relief. It clears the forbearance balance and may offer a fresh start, free from the stress of missed mortgage payments.


  • Sale Proceeds: If your home’s value has not appreciated enough, the sale may not cover the mortgage and forbearance amount. This could leave you with a deficit or require a short sale negotiation with your lender.
  • Credit Impact: While forbearance itself might not hurt your credit score, the process of selling during forbearance might influence how future lenders view your creditworthiness.
  • Timing Challenges: Selling a house requires time and effort. In a fluctuating market, finding the right buyer can be unpredictable, extending the period of financial uncertainty.


Selling your house while in forbearance is feasible for homeowners facing financial hardship. This route offers a way to address missed mortgage payments and avoid foreclosure, providing a fresh start. 

With or without forbearance, discovering how to sell your house fast in Houston or the best time to sell your house in Texas requires understanding the local real estate market and leveraging professional advice. 

That’s where Four19Properties comes in. 

As a reputable company and one of the premier Dallas home buyers, we can help you navigate all the hassle and hurdles of the process. We will offer myriad services, including all the ways to sell your house.

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