Selling a House After Missing Mortgage Payments

Missing mortgage payments sets off a process run by the lender, the servicer that handles the loan, and the law of the state where the property sits. The notices you receive, the deadlines attached to them, and the steps a servicer must take depend on the loan and the state.

We can't help with the foreclosure itself. If selling is something you'd consider, we can introduce you to a buyer.

For help with the loan side, HUD-approved housing counselors give free or low-cost guidance on your options with the servicer and on what to expect in your state. HUD's directory at hud.gov/findacounselor lets you look for one near you, and a legal aid office or an attorney can answer legal questions.

What this involves

• After missed payments, the schedule is set by the loan documents and state law. Some states run foreclosure through the courts and others do not, so the required notices and the time between them differ from one state to the next. An attorney or a HUD-approved housing counselor can walk through how this plays out for your loan.
• Whatever is owed is shown on a payoff statement: the servicer provides one for the loan, and every other lienholder provides its own. Those statements show what would have to be paid from the sale proceeds, and if the proceeds fall short, the lender has to agree; an attorney or a HUD-approved housing counselor can explain the options.
• Conversations about catching up, repayment plans, or changes to the loan are between you and your servicer. A HUD-approved counselor can help you prepare for them.
• How a sale or a foreclosure appears in your credit and tax records is something to ask an attorney or a tax adviser.
• Letters from the servicer or the lender's attorney carry deadlines. Keeping every notice together in one place makes any later conversation with a counselor or attorney easier.