14 Options to prevent foreclosure
Listing the Home
Sell your home before the foreclosure auction to avoid losing equity and protect your credit.
Sell Your Home on the Open Market, Pay Off the Mortgage, and Keep Your Equity
What Does It Mean to “List the Home”?
Listing your home means putting it up for sale on the open market with the help of a real estate agent. If you have equity—meaning your home is worth more than you owe—this option allows you to pay off your mortgage and walk away with cash in hand.
A traditional sale is often the best and most profitable way to stop foreclosure—especially if you act quickly before the auction date.
Who Should Consider Listing Their Home?
This option is ideal for:
- Homeowners with positive equity in the home
- People who can no longer afford the mortgage and want a clean exit
- Those who want to stop foreclosure and protect their credit
- Families facing hardship but want to move on with dignity
- Sellers who want to access their equity before losing it to the bank
How It Works: Step-by-Step
- Hire a local real estate agent—ideally one experienced in pre-foreclosures
- Get a free home valuation to understand your market value
- List the home on the MLS and start showings
- Accept a buyer’s offer and open escrow
- During escrow, your mortgage, taxes, and liens are paid off
- You receive the remaining equity, and foreclosure is canceled
Benefits of Listing the Home
- Stops foreclosure and eliminates the mortgage
- You get to keep your equity—sometimes tens or hundreds of thousands
- Least impact on credit score
- You exit with a clear title and no legal consequences
- Allows time to find a new place to live
- Can buy again sooner than after a foreclosure or short sale
Considerations & Risks
- Must act before the auction date (the earlier the better)
- Repairs or showings may be required unless sold as-is
- Offers must be high enough to cover all liens and fees
- You must cooperate with your agent and escrow process
What You’ll Need to Apply
- Mortgage balance or payoff statement
- Estimated home value or CMA
- Pre-foreclosure letter or auction date (if applicable)
- Real estate agent to list and market the home
- Property disclosure forms (state required)
Timeline
- Listing prep and marketing: 3–7 days
- Showings and offer acceptance: 1–3 weeks
- Escrow and closing: 21–35 days
- Foreclosure paused or canceled once escrow is opened and sale is verified
Real Example
Cynthia had 90 days before auction and $130,000 in equity. We helped her list the home and negotiate a fast sale. She paid off the mortgage, avoided foreclosure, and walked away with $119,000 in proceeds—enough to buy a new home in cash out of state.
Frequently Asked Questions
Q: Can I still list my home if I received a Notice of Default or Sale?
🅰️ Yes. As long as the home hasn’t gone to auction yet, you can sell it. The sooner you act, the more leverage you have.
Q: What if my home needs repairs?
🅰️ You can sell the home “as-is,” or make small updates to increase value. We can help you evaluate the best approach.
Q: Will I have to pay any real estate fees?
🅰️ All commissions and closing costs are typically paid from the sale proceeds—not out of pocket.
Want to Sell Your Home and Keep Your Equity?
Our real estate team specializes in pre-foreclosure sales and can:
- Market your home aggressively for a fast sale
Negotiate with the lender if needed
Coordinate the closing to stop foreclosure
Help you relocate and protect your credit