Selling San Diego Houses During Forbearance

Sell Your San Diego Home During Forbearance

You ask your best friend what she wants for her birthday, and she says she likes your vintage leather jacket. You want to give it to her, but remember you’ve already promised it to someone else.

That’s what it’s like to sell San Diego homes during forbearance. Your home is like the jacket; the buyer is your best friend, and your mortgage company is the person you’ve promised the jacket to.

A forbearance is a pause or reduction in mortgage payments a lender grants. During this time, you are still responsible for paying your mortgage, but at a lower amount or no payment at all.

But what happens if you decide to sell your home during forbearance? Can you even do that? This blog will cover the basics of selling your San Diego home during forbearance and what you need to know.

Understanding Forbearance

Forbearance is an agreement between the owner and their mortgage lender, allowing the homeowner to temporarily pause or reduce their mortgage payments. The purpose is to provide financial relief during hardships like job loss, medical emergencies, or the COVID pandemic. While forbearance can provide much-needed breathing room, it can also impact a homeowner’s ability to sell their house.

The Mortgage Bankers Association (MBA) states that there are currently 115,000 homeowners in forbearance plans, a significant decrease from 165,000 in September 2023. The total number of loans in forbearance dropped from 0.26% in November 2023 to 0.23% in December 2023. This decrease is due to the economic recovery and government initiatives like the CARES Act, which provided mortgage relief options for homeowners.

However, as more people return to work and the economy improves, some may decide that selling their home is their best option. But what does this mean for those in forbearance?

Selling During Forbearance

The good news is that selling San Diego homes during forbearance is possible. However, there are some crucial factors to consider before making this decision.

• Communication With Your Lender: You must keep an open line of communication with your mortgage lender throughout the process. Your lender needs to be aware of your plans to sell and can provide guidance on any potential impact on your forbearance agreement.
• Current Status of Payments: If you have paused or reduced your mortgage payments, you must catch up on those payments before selling. You must make all required payments up until the time of sale.
• Limited Buyer Pool: Potential buyers may be hesitant to purchase a home that is in forbearance, as they might be concerned about the financial stability of the seller and the potential complications involved.
• Possible Fees: In some cases, homeowners in forbearance may have additional fees added to their mortgage balance, including interest and escrow charges. These fees could impact the proceeds from the sale of their home.
• Impact on Credit Score: Selling during forbearance may also negatively impact your credit score, so it’s essential to consider this potential consequence before deciding.

How To Sell San Diego Homes During Forbearance

The most efficient way to sell your home during forbearance is to work with a cash buyer. Cash buyers are not affected by the same restrictions as traditional buyers, and they are often more willing to purchase a home in forbearance.

At I Buy SD, we understand the challenges of selling a house during forbearance and are here to help. We specialize in buying San Diego homes in any condition, including those in forbearance.

We Buy Houses As-Is in Any Condition

When we say we buy houses as-is, we mean it. You don’t have to worry about any of the following issues before selling:

• Dirty: You don’t need to do any cleaning, deep or otherwise.
• Trash: Even if the house is full of trash, we can still make you a fair offer.
• Repairs: We’ll take care of any necessary repairs, big or small.
• Damage: Whether it’s water damage, fire damage, or another type of damage, we’re still interested in buying your home.
• Rundown: No matter how rundown your home may be, we’ll make a fair offer and take it off your hands.
• Fixer Uppers: We always look for fixer-upper houses to add to our portfolio.
• Code Violations: We’ll handle any code violations and bring your house up to code.
• Hoarder Homes: If you’re dealing with a hoarder home, we can help you sell it quickly.
• Death Estates: We can assist with selling death estate properties and make the process as smooth as possible.
• Bad Rental Property Tenants: If being a landlord is no longer for you, we’ll take on the burden of selling a property with bad tenants.

Get an Idea of the Value With Our Home Value Calculator

Selling your home during forbearance doesn’t have to be stressful or complicated. At I Buy SD, we buy houses as-is, so you don’t have to worry about additional stress or financial burden when selling during forbearance. With our free home value calculator, you can get an instant estimate of how much your home is worth.

Contact us or fill out our online form today to receive a no-obligation cash offer. Let us help you navigate the process and get a fair cash offer for your home.