Unlike forbearance with other loans, typically you are still accruing interest while in forbearance on a home loan. Even though you are not required to make payments, whatever payments you can make will reduce the interest you are charged month-to-month. Some banks even require a payment at the end of the forbearance period up to the full amount of the principal accrued.
Forbearance can be a reprieve from payments for those that need it, but ultimately it can put some homeowners into an even worse situation once it ends. For some, selling their home is the best option so they don’t exit forbearance with an even larger amount due.
Yes, there is no issue with selling your home while in forbearance in the state of Washington. There are no laws or regulations limiting owners from being able to do so. It is ultimately up to your bank to approve the purchase and generally they are motivated to close out the loan.
Reasons you may want to sell while in forbearance:
Beware because there are many predatory lenders as well as home buyers in our industry so please make sure to ask plenty of questions, do your research, and trust your gut.
We are a father and son team who purchases homes and remodels them for new families. Instead of destroying homes, we preserve them. Our first priority is to make sure our clients are choosing the best option for their future – which sometimes means alternate avenues. As a bonus, a portion of our proceeds are used for sober living. If you’d like to see what your options are or see how much your home is worth, reach out to us so we can schedule an appointment today.
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