Can I Sell My Home During Forbearance?


On March 27, the President signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act to help combat the far-reaching impacts of COVID-19. The bill provides increased tax incentives for charitable giving for both individuals and corporations, signifying an intent to stimulate philanthropy throughout America.

This bill primarily engrossed on economic relief for companies, individuals, cities, states, and tribal communities. It assigns over $2 trillion in funds for a variety of measures intended to ease the burden of COVID-19.

What is Forbearance?

A Forbearance plan is an option where you and your mortgage company agree to temporarily suspend or reduce your monthly mortgage payments for a specific time. This option lets you deal with your short-term financial problems by giving you time to get back on your feet and bring your mortgage current.

Forbearance may be an option if you are:

Behind on your mortgage payments or close of missing payments

Experiencing temporary hardship.

If your home loan is backed by a federal agency like Fannie Mae, Freddie Mac, USDA loans, VA loan, you qualify to apply for a coronavirus relief under a forbearance plan.

You have the right to request forbearance up to 180 days. If You need it, you can request another 180 days extension. No additional fees, penalties, or interest can be added to your account. You don’t need to prove your financial hardship is related to the coronavirus pandemic.

Few Houses Hitting the Portland Market.

The low supply of houses going up for sale in Portland, Or. may partly be an unintended consequence of mortgage forbearance programs. Such kinds of programs we didn’t use too often before, and we don’t know what their secondary impacts might be.

Also, A bigger reason for the low number of houses hitting the market is the COVID-19 epidemic, and of course, the consequent recession. People sell their homes when they take new jobs and move to new cities. There’s a lot less of that going on now.

Homeowners think that as long as they are in forbearance, they are not in a hurry to sell their houses because they don’t have to make mortgage payments right away, but if today’s economic storm doesn’t show signs of a soon calm. Many of those homeowners will be stepping on unstable ground.

Low-interest rates are playing an important role in real estate market activities. A new listing is receiving up to 8 offers. House’s sales prices have reached 4% more of their original sale price. 

Is Your Property Ready for Sale?

Preparing your house for sale takes time and requires investing a lot of money in repairs, cleaning, and so on. Real estate experts consider the average time to decide and adequate property for sale is 3 to 7 months.

“The average amount of time that a home is officially listed on the market is three months. It typically takes about 45 days from accepting an offer to closing when you’re dealing with a buyer with financing. If you assume your house will be on the market for 30-45 days before accepting an offer, plus another 45 to close, plan to list at least three months earlier than your preferred closing date.” Zillow

You have to take on account:

  • To attract attention, consider custom designs or additions.
  • Remove all clutter from the home for buyers to be able to picture themselves in the space.
  • Offer things or terms that might sweeten the deal for buyers
  • Make sure the exterior of your home looks appealing to potential buyers.

Outside, examine exterior surfaces, weather-stripping, eaves, and windows. Look for damage such as peeling, cracks or rot. Decks and patios should be in good condition. Fencing should be free from damage, like rot or rust. Landscaping should be trimmed back from your home, eliminating the potential for causing damage.

What if you are suffering the COVID-19 hardship? Maybe you didn’t have in mind to sell your house shortly, the property doesn’t look in its best shape to attract motivated buyers.

After 6 months the novel COVID-19 was declared as a pandemic, hundreds of homeowners are getting deeper in a difficult money condition. The CDC and the world health authorities have announced that a vaccine will be available in another 12 months.

With these declarations, the prognostics for a full economic recovery are discouraging.

Portland is one of the cities with a strong economy in the United States, but like is happening everywhere, we are having high unemployment, hundreds of businesses closing their doors, and some violent incidents occurred while protesters showed their support in the metro area and other parts of the city.

Many homeowners were caught out of the base, and today some of them are behind on their mortgage payments, others trying to save their house already signed into a forbearance plan.

Selling my House During Forbearance.

Yes, your bank may allow you to sell the house while it’s in forbearance. If it’s clear that you will not be able to make your mortgage payments, and a loan modification isn’t a good option, then, if it’s clear that you’re attempting to profitably sell your property the bank can even help you by extending the forbearance plan.

Selling a home is a decision that is typically made when people want to buy a larger property, need to move for work, or are implementing retirement plans. In other words, it is a well-considered decision, but today, the negative effect of the pandemic economy is forcing people to sign a forbearance plan to survive and save their home until things become normal. In Portland, many people have lost jobs or businesses and are having trouble paying their bills, including their home mortgage

The CARES act is a limited time relief proposal to help homeowners and tenants from eviction and foreclosure. Although the act intends to relieve, it is a double-edged sword.  On it, there are no rules or directions to help homeowners who after the forbearance time still would be income struggling. 

Experts believe a foreclosure tsunami is forming and will be hitting us ending 2020. The economy will not recover on time to prevent people from losing their homes. Banks and lenders will take the best piece of the crisis cake, they will keep their money business on the rail, or in the worst case scenery, they will be government financial bailout.

To have a successful and profitable home sale transaction, the real estate agents demand properties for sale must be in perfect condition,  home loans current, and big equity.

If prospect properties for sale do not fit these requirements they will be rejected, period.

Real estate agents consider a waste of time dealing with an underwater property. They don’t have the knowledge to navigate on waters where desperate homeowners need help.

We Better Off Home buyers buy your home! It doesn’t make any difference if you are mortgage loan current, or behind payments, under a deferred payment or a forbearance plan, or in a foreclosure process. We can help you, you just need to contact us.

Please fill out the information form on this page or dial directly (503) 212-9641.

Yes, you can sell your house during forbearance. We will buy it.


Hi, I'm Scott Dalinger a real estate investor in Portland, Oregon. I focus on helping homeowners and rental property owners out of negative situations by offering cash for their property. I research and write about real estate on my business website.

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

What Do You Have To Lose? Get Started Now...

We buy houses in ANY CONDITION in OR. There are no commissions or fees and no obligation whatsoever. Start below by giving us a bit of information about your property or call 503-809-4855...
  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *