Your options when the house payment has to go
There's no one right answer. Here's an honest look at each path, including the ones that don't involve us.
Three ways to sell, side by side
| Compare | List with an agent | We take over your payments | Sell for cash |
|---|---|---|---|
| Best when | The house shows well, you have equity, and you can wait | You owe close to what it's worth, or listing would leave you little or nothing | You have enough equity to pay off every loan |
| Speed | Often 2–4 months to list, sell, and close | Often a few weeks | Often a few weeks |
| Repairs needed | Usually some, plus showings | None | None, usually |
| Cash to you | Often the most, after costs | Little or none in many cases | Below retail, but in hand at closing |
| What happens to your loan | Paid off at closing | Stays in place, usually in your name; we make the payments | Paid off at closing |
| Credit impact | None, if paid off | On-time payments report as yours; a late one would hurt | None, if paid off |
| Costs to you | Commissions and closing costs, often 8–10% | No fees to you; closing costs set in the contract | Usually few or none |
| Watch out for | Buyers whose financing falls through | The lender could call the loan due | Lower price than retail |
Other paths worth knowing
Loan modification or forbearance
If you want to keep the house and your income can support a lower or paused payment, call your servicer and ask.
Short sale
If you owe much more than the house is worth and need the loan fully resolved, your lender may accept less than the balance.
Deed in lieu of foreclosure
If you can't sell, giving the house back to the lender can be less damaging than a foreclosure judgment.
Rent it out yourself
If the rent covers the payment, taxes, insurance, and repairs, and you're willing to be a landlord.
Bankruptcy
If you have serious debt beyond the house, a bankruptcy attorney can tell you whether it would help. Talk to an attorney before deciding.
Free help from a housing counselor
HUD-approved counselors are free or low-cost. Call 1-800-569-4287 or use the HUD counselor finder.
How to decide
- Do you need the loan gone? If yes, a regular sale, cash sale, or short sale fits better than a payment takeover.
- Do you have equity? If you have a lot, listing will likely net you the most.
- How fast do you need out? If it's weeks, not months, a direct sale may be the practical choice.
Let's see if taking over your payments makes sense.
Share a few numbers. If it fits, we'll explain the plan. If it doesn't, we'll tell you what might work better.
See if your house is a fit
Takes about 2 minutes. No cost and no obligation. You'll talk to a real person, not a robot.
Step 1 of 2: Your house