Can I Still Sell My Home If I’m Behind on Payments?
Short answer? Yes, absolutely. In fact, being behind on payments is one of the biggest reasons short sales get approved in the first place.
If you’re struggling to make your mortgage payments and wondering whether you still have the option to sell your home, you’re not alone. A lot of homeowners think that missing payments disqualifies them from selling—but when it comes to short sales, that couldn’t be further from the truth.
Let’s clear up a few common misconceptions and walk through what really matters in these situations.
Falling Behind Signals Financial Hardship—And That’s the Point
Many homeowners think that in order to look responsible or show “good faith,” they need to keep paying their mortgage throughout the short sale process. But here’s the thing:
The bank isn’t looking for responsible. They’re looking for distressed.
Short sales are designed to help homeowners who are underwater and cannot afford to keep paying. If you’re current on your mortgage, the lender may question whether you truly need assistance. But if you’ve missed payments and can show a legitimate hardship—job loss, divorce, medical bills, relocation—you’re actually a much stronger candidate for approval.
So no, you don’t need to drain your savings to keep making payments just to try and “look good.” That won’t help your case—in fact, it might hurt it.
What About HOA Dues and Property Taxes?
Another common concern is falling behind on HOA fees or property taxes. But good news: you don’t need to panic about those either.
When we help facilitate a short sale, we typically negotiate those debts into the transaction, meaning the bank may agree to pay off back dues at closing. That includes:
• Past-due HOA balances (even with late fees or attorney costs)
• Unpaid property taxes
• Municipal liens or nuisance violations
This is one of the big advantages of working with an experienced short sale processor—we know how to structure the deal to clear all those obstacles so you walk away clean.
But Keep the Lights On, Please
While you don’t need to keep up with mortgage or HOA payments, there’s one area where staying current does matter: your utilities.
Keeping the power, water, and gas on helps ensure:
• The home is ready for showings and inspections
• Buyers don’t get spooked by disconnected services
• You avoid surprise liens from utility companies at closing
If utilities are shut off, it can delay the process—or worse, kill the deal entirely. So if possible, keep those services active until we close.
Selling While Behind Is Common—And Doable
Falling behind on mortgage payments can feel overwhelming, but it doesn’t mean you’re out of options. In fact, that’s usually the moment when a short sale makes the most sense.
You don’t need to be ashamed or afraid to ask for help. This is exactly what short sales are for—and we’re here to guide you through it every step of the way.
If you’re already behind on payments and considering a short sale, let’s talk. We’ll help you understand your options, navigate the process, and get to the closing table with as little stress as possible.
Learn more about your options: short sale options for homeowners in distress, help selling house with late mortgage, short sale while behind on mortgage, or work with a trusted short sale processor.
FAQs
Can I start a short sale even if I’ve missed several mortgage payments?
Yes. Being behind on your mortgage often strengthens your short sale case, as it shows the lender you’re truly experiencing financial hardship.
Do I have to catch up on HOA fees and taxes before I can sell?
No. In most cases, those debts can be paid at closing as part of the short sale. We negotiate those into the deal for you.
Should I still pay utilities during a short sale?
Yes. Keeping the utilities on helps the sale process go smoothly and avoids extra costs or liens.