Massachusetts + New Hampshire Homeowners

Facing Foreclosure or Considering a Short Sale?

Before you assume you’ve run out of options, understand where you stand.

Falling behind on a mortgage can happen for many reasons. A change in income, unexpected expenses, a life change, or simply falling further behind than you ever expected can quickly become overwhelming. The important thing is not to ignore it.

If you’re having difficulty making your mortgage payments—or you’ve already received notices from your lender—there may still be options available to you.

The earlier you understand your situation, the more time you may have to make informed decisions.

Start with the numbers

What is your home worth today, and how much do you actually owe?

You may have more equity than you realize.

If your home’s likely selling price is enough to pay your mortgage and other obligations associated with the property and sale, a traditional sale may still be possible.

If the amount owed is greater than what the property can reasonably sell for, a short sale may be one option to explore.

But a short sale isn’t simply a homeowner deciding to sell for less. Your mortgage servicer—and potentially other lienholders—may need to approve the transaction.

Do you have equity—or are you upside down?

Start with three numbers

Before making that decision, let’s find out what the property is worth, identify what is owed, and look at the numbers. You may have more options than you think.

What is a short sale?

The lender becomes part of the process

A short sale may become an option when the proceeds from selling your home are not enough to satisfy the mortgage and other amounts that must be resolved for the sale to close.

When a lender is being asked to accept less than the amount owed, the homeowner isn’t the only party involved in approving the transaction.

You may accept an offer from a buyer, but if the transaction requires your lender to accept less than the amount owed, the lender or mortgage servicer will generally need to review and approve the short sale.

There isn’t one universal short-sale process. The requirements can vary depending on the lender or servicer, the type of loan, the investor behind the loan, additional liens, the property’s value, and the homeowner’s individual circumstances.

If foreclosure has already started

Don’t ignore it

Receiving a foreclosure notice does not mean you should stop asking questions or exploring your options. But it does mean time matters.

Open every letter. Keep every notice. Know the dates. Contact your mortgage servicer. And if you’re considering selling the property, don’t wait until the foreclosure sale is right around the corner to find out what your home is worth.

If you’ve received a foreclosure notice, don’t throw it away—even if you don’t completely understand it. The dates matter.

What are my options?

Foreclosure is not necessarily the only possible outcome

The right path depends on your finances, your loan, the property’s value, how far behind you are, and what options your mortgage servicer may offer.

Being behind on your mortgage does not automatically mean you need a short sale. If your home is worth enough to cover the mortgage and the other obligations and expenses that need to be resolved at closing, you may be able to sell traditionally.

Before You Give Up, Let’s Look at the Numbers

You don’t need to have everything figured out before making the first call.

No assumptions. No judgment. Just information to help you understand your next step.