A short sale is an option.
It is not the only one.
Start with your goal, the payment you can sustain, and the costs and conditions of each realistic option.
Temporary relief, a lasting change to the loan, and leaving the home solve different problems. We work with you and your servicer to discover which options are available for your loan and obtain the actual terms before deciding.
Start with three questions
- What is your goal? Would you prefer to stay if a sustainable arrangement is available, or do you need to move? It is reasonable to compare both paths before choosing.
- Is the income change temporary or ongoing? Separate income you currently receive from income you hope will return. Tell the servicer what is known and what is uncertain.
- What can the household sustain? Make a private budget that includes housing costs, ordinary living expenses and a cushion for irregular bills. Ask what a quoted payment includes and excludes, including property taxes, insurance and any association dues.
A HUD-approved housing counselor can help you understand options and prepare for the servicer conversation. You do not need to select a short sale before asking for help.
If keeping your home is the goal
Eligibility and terms depend on your loan and circumstances. These are comparison points, not a complete list of available programs.
| Option | What changes, and what to ask |
|---|---|
| Repayment plan | Missed amounts are spread over an agreed period and added to regular payments. Ask: What is the full payment during the plan, how long does it last, and what happens if I cannot make one of those payments? |
| Forbearance | Payments are temporarily paused or reduced; the unpaid amounts are not forgiven. Ask: What must I pay during relief, how does interest accrue, and exactly when and how will I repay the missed amounts? Do not assume a lump sum is always required or never required. |
| Loan modification | The existing loan terms change. Depending on the arrangement, that may affect the rate, repayment length or principal treatment. Ask: What are the payment, repayment term and total amounts owed in the short and long term? A lower monthly payment is not the whole cost comparison. |
For any option, ask for a breakdown of what is due immediately, during the plan and afterward. If part of the balance will be paid later, ask when it becomes due, including whether a sale, refinance or the loan ending would trigger payment. Have the servicer explain the actual written terms rather than assuming every program works the same way.
If selling or leaving is the goal
| Option | What to clarify before choosing |
|---|---|
| Traditional sale | Would the estimated net proceeds cover everything needed to close? Compare likely sale proceeds with current payoff information, other closing requirements and selling costs, not just the principal balance shown on a mortgage statement. |
| Short sale | A buyer purchases the home for less than the mortgage debt, subject to required approval. Ask which lienholders must agree and what the written sale and closing conditions are. Have qualified advisers review debt and tax questions separately. |
| Deed in lieu | Ownership is voluntarily transferred to the lender rather than selling to a buyer. Ask whether it is available, how other liens affect the proposal, what the written agreement requires, and when you would need to move. Obtain qualified advice about any unresolved obligations. |
Ask an agent or closing professional for a written estimate with its assumptions and date. Keep any potential shortfall, selling costs and moving costs separate. An estimate helps compare options; it is not a lender approval, a final closing statement or a promise of what you will receive or owe.
If you are considering a short sale, use the title-report questions and written-approval review before treating a proposed transaction as ready to close. If assistance with a move is mentioned, use the relocation-assistance questions rather than relying on an unconfirmed amount.
Make one private comparison note
Use a paper notebook or your own secure file. Make a separate entry for each option the servicer or adviser is actually willing to discuss:
- Goal and fit: stay or leave; which problem the option addresses; what still does not work.
- Amounts and dates: due now, monthly during the plan, afterward and at any later trigger; identify estimates and unknowns.
- Costs beyond the quoted payment: taxes, insurance, association dues, selling expenses or moving costs as applicable.
- Conditions: documents, approvals and actions required; who will confirm each item; what happens if a condition cannot be met.
- Evidence and next step: date, contact, written source, unanswered question, person responsible and agreed follow-up.
Leave an unknown amount marked “not yet confirmed”. Do not treat it as zero or compare an estimate for one option with a confirmed figure for another without noting the difference. Do not upload account statements, personal budgets or financial documents through this website.
Imagine that a temporary payment pause is discussed, but the homeowner is not sure when regular income will return. The pause alone does not answer whether the payment after relief will be affordable. A useful next question is: “What will I owe when relief ends, and which other options can we evaluate if my income has not recovered?” This is a hypothetical planning example, not a recommendation to stop making payments.
Keep deadlines separate from the comparison
If you have received a foreclosure notice or a scheduled sale date, contact your servicer and qualified legal counsel promptly about your specific situation. Keep the actual notices and ask who will confirm current status. Comparing options does not itself postpone a sale; do not infer a change from a conversation or an unanswered request.
For a next call, the conversation-preparation guide helps organize requests and written follow-up. HUD's homeowner help page includes ways to find housing counseling.
- CFPB: What are my options if I cannot pay my mortgage?
- CFPB: Repayment plans; forbearance; loan modifications
- CFPB: Avoid foreclosure and compare options
- CFPB: Short sales; deeds in lieu
- HUD: Avoiding foreclosure and finding help
The comparison note and example are original educational tools. No legal deadline, tax outcome, debt treatment, approval or foreclosure delay is determined here.
You do not have to figure it out alone.
Organize your questions, understand the next decision, and prepare for a confidential conversation.