Can you sell your house after a loan modification?
December 11, 2020
December 11, 2020
Families often get a loan modification when they’ve fallen on hard financial times. A loan modification can allow them to stay in their homes and avoid foreclosure. A common question is whether you can sell after receiving a loan modification. The answer is yes–you may want to talk with your lender about how much you owe, but you can still sell your property.
If you are behind on your property’s payments, you might be interested in a loan modification. A loan modification changes the terms of your loan, and can significantly lower your interest payments and make it easier for you to afford to stay in your home long term. There is some confusion about how loan modifications affect home sales. Taking a loan modification changes the terms of your loan, but does not impact your ability to sell your home. You can still sell your home even after a loan modification. Here is why someone might choose to modify their loan, and how they can sell afterwards.
Why Someone Might Choose A Loan Modification
Someone might choose a loan modification if they are behind on their mortgage payments or anticipate falling behind. Generally a loan modification changes the terms primarily by impacting the interest rate. Borrowers may be able to take advantage of a lower interest rate and use that in order to be able to afford their payments going forward. A loan modification isn’t going to work in every situation. But if you are undergoing financial hardship, you should talk with your lender about your options.
You Can Sell As Soon As Your Loan Modification Goes Into Effect
When your loan modification goes into effect, you don’t have to wait. You can sell your home immediately. For instance, you might use a loan modification to help stabilize your finances. And after that stabilization is complete, you may then look at selling your home once you are on better financial footing.
Selling On Your Terms
One of the reasons why families who have used loan modifications look at selling to investors is because they want to sell on their own terms. You may have to work with your lender on figuring out how you can best sell your property on the traditional market. But when you work with an investor, you can get a cash offer that allows you the flexibility to move on your own timeline. Having that financial flexibility is crucial, especially for those that are looking to sell after going through a difficult period. Being able to sell on your own terms is something that makes selling to an investor more of an attractive proposition.
Getting a loan modification doesn’t preclude you from selling your property. A loan modification may hurt your credit, but you will still be able to sell your home. It can be easiest to sell your home as-is, for cash. At 4 Brothers Buy Houses, we can help you with that. We specialize in buying homes just like yours in the DMV area. If you are looking to sell your home for cash, give us a call. We’d be happy to purchase your property. Our team will give you a free, no obligation quote and you can move on it on your timeline.