Selling a House When You’re Behind on Payments

Need To Sell Your House But Behind On Payments? Call 434-390-2906

Selling a House When You’re Behind on Payments in Lynchburg: Your Options to Avoid Foreclosure

If you’ve fallen behind on mortgage payments, you are not alone, and you still have options. Many homeowners in Lynchburg worry that missing payments automatically leads to foreclosure. In reality, you can often sell your house before foreclosure, protect your credit, and regain control of your situation.

Homeowners who are behind on mortgage payments can often sell their house before foreclosure, either by listing it as-is or accepting a cash offer, allowing missed payments to be resolved at closing and helping protect their credit.

This guide explains exactly what happens when you’re behind on payments, how selling works, and how to decide whether listing or selling for cash is the right move.

What Happens When You Miss Mortgage Payments?

Once you miss a payment or two, your lender will likely:

• Charge late fees
• Send notices warning of default
• Report the delinquency to credit bureaus

After several missed payments, you may receive a Notice of Default, which starts the pre-foreclosure process in Virginia. If no action is taken, the lender can schedule a foreclosure sale, often with very little court involvement. The key is acting before that happens.

Can You Sell a House When You’re Behind on Payments?

Yes. As long as foreclosure has not finalized, you can usually sell your home—even if you’re months behind. The key is acting before the foreclosure sale date.

Selling allows the mortgage payoff (including missed payments and fees) to be handled at closing, often preventing foreclosure entirely.

Step 1: Get Your Mortgage Payoff Amount

Your lender can provide a payoff statement, which includes:

• Remaining loan balance
• Missed payments
• Late fees and legal costs

This number determines whether you have equity or need alternative solutions like a short sale.

Step 2: Determine If You Have Equity or Are Underwater

• Equity: Home value exceeds payoff → you can sell normally
• Underwater: Owe more than value → a short sale may be required

Knowing this upfront prevents surprises later.

Your Options When Selling Behind on Payments

Option 1: List Your House on the MLS (As-Is)

Best if:

• You have equity
• You can wait for a buyer
• Foreclosure timeline is not urgent

Pros: Potentially higher price
Cons: Showings, delays, buyer financing risk

Option 2: Sell Your House for Cash (As-Is)

Best if:

• Time is critical
• Repairs are not affordable
• You want certainty and speed

Pros: Fast closing, no repairs, no financing delays
Cons: Lower price than retail—but often higher net certainty

Option 3: Short Sale (If Underwater)

Best if:

• You owe more than the home’s value
• Foreclosure is approaching

Pros: May avoid foreclosure
Cons: Longer timeline, lender approval required

We Help Lynchburg Homeowners Sell—Even If You’re Behind

At Linken Investments, we help homeowners just like you sell their homes fast—no commissions, no repairs, and no waiting. If you’re behind on payments, we can:

• Make a fair cash offer within 24 hours
• Compare a cash offer vs an as-is MLS listing
• Help you avoid foreclosure and move forward

Call or Text: 434-390-2906 for more information

We were in a bad situation and needed help. I called Linken Investments and Ken came right over. He made us a cash offer on our house, helped us find an apartment, and even helped us pay the moving expenses. 3 weeks later we are in our new place with money in the bank. I spoke with some other companies but knew the first time I meet Ken that he has a big heart and really cares about people. – Kendall Monk

Frequently Asked Questions

Can selling my house stop foreclosure?

Yes, in many cases selling before the foreclosure sale date can stop the process entirely.

Will selling hurt my credit?

Selling generally causes far less damage than foreclosure and may help protect your credit.

Do I need to catch up on payments before selling?

No. Missed payments are typically handled through the payoff at closing.

How fast can I sell if I choose a cash offer?

Some sales close in as little as 14 days, depending on the situation.

Can I sell if my house needs repairs?

Yes. Many buyers—including cash home buyers—purchase homes as-is.

What if I’m already in pre-foreclosure?

You may still have time. The sooner you act, the more options you usually have.

Let’s Talk Before Things Get Worse

You don’t have to wait for foreclosure to take your home. If you’re behind on payments, let’s find a solution that works for your situation—on your terms.

📞 Call or Text: 434-390-2906