Educational overview

Every option, laid out clearly

There is no single right path. The best option depends on your timeline, equity, income, and goals. Read each carefully — and then talk to a professional you trust.

Keep the home Sell with a realtor Sell directly for cash Short sale Bankruptcy Foreclosure

Option 01

Keep the home

Several programs and arrangements may allow you to stay in the home and bring the loan current over time.

Loan modificationForbearanceRepayment planRefinancingMortgage assistance programsFamily financial assistance

Potential pros

You keep your home and equity
Stabilizes monthly payments
Often the least disruptive option

Potential cons

Requires lender approval
Can take 30–120 days
Income documentation required

Best when: You have stable income returning soon and want to remain in the home long-term.

Option 02

Sell with a realtor

List on the open market to capture full retail value. Best when there is enough time and equity to absorb commissions, repairs, and showings.

Potential pros

Highest potential sale price
Buyer financing typically secured
Familiar process

Potential cons

Commissions of 5–6%
Repairs and showings
Timeline of 30–90+ days
Risk of buyer fall-through

Best when: You have meaningful equity, time before sale date, and a property in good condition.

Option 03

Sell directly for cash

An investor or buyer purchases as-is for cash. Trades a lower price for speed, certainty, and flexibility.

Potential pros

Fast closing (often 7–21 days)
No repairs or showings
No commissions or fees
Flexible move-out timeline

Potential cons

Below retail price
Quality of buyers varies — verify proof of funds
Not always the right fit

Best when: Sale date is approaching, the home needs work, or privacy and certainty matter more than top dollar.

Option 04

Short sale

Lender agrees to accept less than the loan balance to allow a sale. Useful when you owe more than the home is worth.

Potential pros

Avoids foreclosure on credit
Lender may forgive remaining balance
More dignified exit

Potential cons

Lender approval can take 60–120 days
No cash to seller
Tax implications possible

Best when: You are underwater on the loan and need to exit without a deficiency.

Option 05

Bankruptcy

Filing Chapter 7 or Chapter 13 triggers an automatic stay that temporarily halts foreclosure. A legal strategy — not a financial product.

Potential pros

Immediate automatic stay
Chapter 13 may restructure arrears over 3–5 years
Protects certain assets

Potential cons

Serious credit impact for 7–10 years
Trustee oversight of finances
Does not erase the mortgage lien

Best when: You need immediate time and have a viable repayment path under Chapter 13.

Important: Bankruptcy is a legal decision. Speak with a licensed bankruptcy attorney before filing — this site is not legal advice.

Option 06

Foreclosure

If no action is taken, the lender proceeds to trustee sale. Understanding the consequences is essential — even if this becomes the outcome.

Potential pros

No further action required from owner

Potential cons

Credit score drop of 100–160+ points
Foreclosure remains on credit for 7 years
Loss of all remaining equity
Possible deficiency judgment in some cases
Future mortgage qualification delayed 3–7 years

Best when: Rarely the best option when meaningful equity remains.

Educational purposes only. We are not attorneys, accountants, financial advisors, lenders, or a government agency. Please seek professional legal, tax, and financial advice before making decisions.

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