monthly payments

Behind on Loan Payments? Sell Your Home to Cash Buyer: A Guide

If you’re a seller struggling to keep up with your mortgage payments and need to sell your house fast, traditional sales methods may not be feasible. That’s where cash buying companies, also known as house flippers, come in. These companies can provide a solution for homeowners who are behind on their payments and need to sell quickly in the current real estate market.

The good news is that cash buyers, including house flippers, can offer delinquent homeowners a hassle-free and fast alternative to potentially losing their home and damaging their credit report. These sellers facing bankruptcy can benefit from the quick sale and avoid further financial stress.

In this article, we’ll discuss why getting a cash offer can be good news for sellers facing financial issues such as bankruptcy. So if you’re wondering whether you can sell your house when behind on payments or if you’re considering selling your home to investors for money, keep reading. This is especially important for those who are struggling to pay for their houses.

Understanding the Preforeclosure, Foreclosure, and Post-Foreclosure Process

The foreclosure process is a legal proceeding in which a debt holder takes possession of a property via a public auction when the homeowner fails to make their mortgage payments. This can be a stressful and confusing time for many homeowners, especially those facing bankruptcy. House flippers may also be interested in purchasing foreclosed houses through these auctions. Understanding the process can help alleviate some of that stress. A good source of information is found at the Consumer Financial Protection Bureau

The Foreclosure Process

The loan default process begins when many homeowners fall behind on their mortgage payments for their houses. After several missed payments, the lender will send a foreclosure notice to the sellers. This notice outlines the steps of the foreclosure process and informs them that their property may go to auction if they fail to bring their payments up to date. Some sellers may receive cash offers to help them avoid foreclosure.

If the homeowner continues to miss payments and fails to work out an agreement with their lender, then the lender will initiate default auction for the houses. This typically involves recording a notice of default against the home sellers. In California today, investors who make cash offers are interested in the foreclosure process which takes about four months to complete.

During this time, the homeowner has several avenues available to them. They can try to negotiate with their mortgage servicer for more favorable loan terms or payment arrangements. They can also hold onto their houses and wait for the right time to sell, market their home through a traditional listing process, or solicit a cash offer from investors or a home buying company. Alternatively, they can consider selling their property through an auction to attract potential buyers.

Selling Your Home During Pre-Foreclosure or Foreclosure

Selling your house when in loan default may be the way to go if you’re struggling with finances and don’t have enough money for mortgage payments. By doing so, you may be able to avoid some of the negative consequences of foreclosure, such as damage to your credit report and difficulty obtaining future loans. You can consider cash offers from investors or auctions to get the best deal.

If you decide to sell your house during pre-foreclosure or foreclosure, there are two primary ways you can do so: through the traditional open market selling process or by selling it directly to cash home buyers.

The traditional house listing process means working with a real estate agent who will list your house on multiple listing services (MLS) and market it through various means. This method typically takes longer than selling directly to a cash home buying company, or flipper, but in the end, usually results in higher sales amount.

Selling your house directly to a flipper involves working with a real estate investor who will typically buy your property for cash within days of seeing it. This method is a great option for sellers where time is of the essence and need to sell their house quickly. However, as mentioned, cash offers will result in a lower sale price as compared to a traditional sale.

If the foreclosure process is completed, the property is auctioned off at the courthouse steps where prospective buyers can bid on the property. Cash offers are usually preferred by sellers in these auctions. If there are no bidders, the property reverts to the bank as an REO (real estate owned) and the bank now owns the property. At this point, the homeowner loses ownership of the property.

At the auction, if the house is sold to a prospective buyer with cash offers, any proceeds from the sale will first go towards paying off any outstanding mortgage debt and fees associated with the foreclosure process. If there are any funds left over after these debts are paid, they will be returned to the homeowner.

Understanding State-Specific Laws

It’s important for homeowners to understand that foreclosure laws vary by state. Some states have strict regulations that protect homeowners from losing their houses too quickly, while others have more lenient laws that allow lenders to initiate the selling process sooner. Homeowners who are looking to buy a new house should also be aware of these laws to avoid any potential issues during the buying process.

Homeowners who plan to buy a house should familiarize themselves with their state’s specific laws and regulations regarding the loan default process to ensure they understand their rights and options during this difficult time.

Talking with Your Mortgage Lender: Loan Modification and Refinancing Options

If you’re in a dire financial situation and considering selling your house to a real estate investor to buy time, explore all of your alternatives first. One of the first steps you can take is to talk with your mortgage servicer about loan modification and refinancing options.

Contacting Your Mortgage Lender

The first step in exploring your options for loan modification or refinancing your house is to contact your mortgage servicer as soon as possible. The sooner you reach out, the more likely it is that they will be able to work with you to find a solution that works for both parties. If you’re planning on home sales or looking to buy, speaking with your mortgage servicer can help you navigate the process and potentially find a solution that works for your unique situation.

When speaking with your lender about your home sales, be honest about your financial instability and explain why your financial hardship is making it difficult to make payments on the house. In many cases, they may be able to offer guidance on what steps you can take next if you’re looking to buy a new home.

Loan Modification

Loan modification is one option that may allow you to renegotiate the terms of your mortgage loan for your house purchase. This can include changes such as reduced interest rates, extended grace period repaying back debt, or even forgiving some of the debt owed.

To qualify for a house loan modification, lenders typically require proof of financial instability and the ability to make modified payments going forward. Keep in mind that some lenders may also require repairs or renovations to the property before approving a loan modification. If you’re looking to buy a house, a loan modification may be an option to consider.


Refinancing your house is another viable idea that could help reduce monthly debt service if you have good credit and can secure a lower interest rate than what you currently have. This involves taking out a new mortgage loan with different terms than your current one, which can be helpful if you are looking to buy a new house.

Before considering refinancing your house, it’s important to weigh the extra costs associated with this. These costs may include appraisal fees, application fees, and closing costs. If you’re looking to buy a new house, it’s also crucial to consider these expenses.

Repairs and Renovations

As mentioned earlier, some lenders may require repairs or renovations before approving a loan modification or refinancing for your house. While this may seem like just more extra costs, keep in mind that there’s a good chance these repairs could increase the value of your property in the long run, making it more attractive for potential buyers looking to buy a house.

If you’re planning to buy a house and concerned about the cost of repairs or renovations, talk with your lender about what options are available to you. They may be able to offer guidance on how to make these changes without breaking the bank.

Final Thoughts

Selling your house to a cash buyer should be a last resort. Before taking such drastic measures, explore all of your options for loan modification and refinancing. Contacting your mortgage lender or servicer is the first step in finding a solution that works for both parties and helps you keep your house.

Remember, be honest and upfront about your financial hardship when speaking with lenders regarding your house. They may be more willing to work with you if they understand the reasons why you are struggling with your house finances.

Option 1: Doing a Short Sale to Avoid Foreclosure

If you’re behind on your house mortgage payments, you may be feeling overwhelmed and unsure of what to do next. One of the alternatives on the table is doing a short sale. This can be a great solution for homeowners who are struggling to keep up with their house mortgage payments and want to minimize damage to their credit.

Short Sales: A Great Option

A short sale is when you sell your house for an amount that is less than what you owe on your mortgage. In many cases, this can be a great way to go because it allows you to get out from under your mortgage debt without having to go through the default process. Not only does this save you time and stress during this tough chapter of life, but it also helps protect your credit score.

Finding a Buyer

In order to use this option, a seller needs to find a buyer who is willing to purchase their house in a short sale transaction. This can be tricky, as not all buyers are interested in purchasing houses that are being sold in a short sale. However, there are many investors and flippers who specialize in buying houses in distressed situations like this.

Moving On From Your Mortgage Debt

Choosing a short sale gives a house seller the chance to get out of a difficult situation. While it may not be the ideal outcome, it’s often better than facing lender default and its negative consequences.

The Process

The process of doing a short sale for a house involves several steps.

  1. Contacting your lender: You’ll need to contact your lender and let them know that you’re interested in doing a short sale for your house.
  2. Listing your house: You’ll need to list your house for sale with an agent or broker who has experience with short sales.
  3. Finding a buyer: Once your house is listed, you’ll need to find a buyer who is willing to purchase it in a short sale transaction.
  4. Negotiating with the lender: Your lender will need to approve the sale, so you’ll need to negotiate with them to get their approval.
  5. Closing the sale: Once everything is approved, you can close the sale and move on from your mortgage debt.

Alternatives to selling your house when you’re behind on payments

If you’re struggling with making your house payments and falling behind on mortgage payments, selling your home to a cash buyer may seem like the only option. However, before resorting to this drastic measure, there are several alternatives that you can consider.

Refinance your mortgage payments to lower the monthly payments.

One of the most common alternatives is refinancing your mortgage. Refinancing allows you to replace your current mortgage with a new one that has better terms and interest rates. This can significantly lower your monthly payments and make it easier for you to keep up with them.

Consider a loan modification program to adjust the terms of your mortgage.

Another alternative is a loan modification or mortgage forbearance program. This program allows you to modify the terms of your existing mortgage so that it becomes more affordable. You can negotiate with your lender for a lower interest rate, an extended repayment period, or even forgiveness of some of the principal balance.

Rent out a room or part of your house to generate extra income and cover the house payments.

Renting out part of your house is another way to generate extra income and cover the cost of house payments. You could rent out a spare room or even convert part of your house into an Airbnb rental. This can help you bring in additional money each month while still keeping ownership of your home.

Negotiate with your lender to delay or reduce the payments until you can catch up, instead of selling your house and facing extra costs.

Finally, if none of these options work for you, consider negotiating with your lender directly. Many lenders are willing to work with homeowners who are struggling financially by offering payment plans or temporary forbearance agreements. These agreements allow you to delay or reduce some or all of your payments until you get back on track financially.

Is it worth selling a home in good condition to an iBuyer? Exploring your options

If you’re looking to sell your home quickly, you might have come across the term “iBuyer.” These are real estate companies that use technology to make instant cash offers on homes. While selling your home to an iBuyer can be a convenient option, it’s important to consider the costs associated with this type of sale and whether it’s worth it for you.

What are iBuyers?

IBuyers are companies that use algorithms and data analysis to determine the value of a property and generate fair cash offer. They typically aim to complete the transaction quickly, often within days or weeks, which is why they’re popular among homeowners who can’t wait and need to sell their homes fast.

How do iBuyers determine offer prices?

IBuyers use various data sources, such as public records and MLS data, to determine the market value of a property. They also take into account factors like location, size, age, and condition of the home. Based on this information, they make an offer price that reflects what they believe is fair market value minus their profit margin.

What are the pros and cons of selling your home to an iBuyer?


  • Quick sale: If you have to sell your home fast due to financial issues or other reasons, an iBuyer can provide a quick solution.
  • Convenience: Selling your home through an iBuyer is often less stressful than a traditional sale.
  • No repairs needed: Unlike traditional buyers who may request repairs or renovations before closing the deal, ibuyers typically purchase homes as-is.


  • Lower offer price: Since iBuyers aim for quick profits, their offer price may not reflect the true market value of your home.
  • Fees: Selling through an iBuyer comes with fees that can add up quickly, including service fees, closing costs, and repair deductions.
  • Limited options: When you sell your home to an iBuyer, you’re limited to the offer price they give you. You won’t have the opportunity to negotiate or shop around for a better deal.

How does the condition of your home affect its value with iBuyers?

The condition of your home is a crucial factor in determining its value with iBuyers. If your home is in good condition, you may receive a higher offer price than if it needs repairs or renovations. However, even if your home is in good condition, iBuyers may still deduct repair costs from their offer price.

What are other options besides selling to an iBuyer?

If you’re not sure whether selling to an iBuyer is right for you, there are other options available. Here are some alternatives to consider:

  • Listing with a traditional real estate agent: While this option may take longer than selling through an iBuyer, it can potentially result in a higher sale price.
  • Selling directly to a cash buyer: This option involves finding an individual or company that can provide a cash offer without using a real estate agent. It can be faster than listing with an agent and may result in a higher sale price than selling to an iBuyer.
  • Renting out your property: If you don’t need to sell your home immediately and want to generate income from it, renting it out could be an option.

Sell to a Cash Buyer: Finding Reputable Buyers and Selling Your House Fast

If you’re behind on loan payments or facing financial difficulties, selling your house quickly for cash may be the solution you need. Cash buyers are real estate investors who buy properties with cash, usually with the intention of renovating and reselling them for a profit. In this article, we’ll discuss how to find reputable cash buyers and sell your house fast.

Who Buys Houses for Cash?

Cash home buyers can provide a fair cash offer for your property, often within days of seeing it. Home buying companies and investors are also potential buyers who may be interested in purchasing your property for cash. House flippers are another type of cash buyer who may be interested in purchasing your property if it needs repairs or renovations.

How to Find Reputable Cash Buyers

When searching for a cash buyer, it’s important to do your due diligence to ensure that you’re dealing with a reputable company or individual. Here are some tips to help you find reputable cash buyers:

  1. Research online: Look up reviews and ratings of different home buying companies in your area. Check their website and social media pages to see if they have any testimonials from previous clients.
  2. Ask for referrals: Talk to friends, family members, or colleagues who have sold their homes to cash buyers before. Ask about their experience and if they would recommend the company they worked with.
  3. Check credentials: Make sure the company is registered with local authorities and has all necessary licenses and certifications.
  4. Get multiple offers: Don’t settle on the first cash offer you receive. Get quotes from multiple companies so you can compare prices and terms.
  5. Read the contract carefully: Make sure you understand all terms and conditions before signing any contract or agreement.

How Much Do Cash House Buyers Pay?

The amount that cash house buyers pay varies depending on several factors such as the condition of the property, location, and market demand. Typically, cash buyers offer between 70-80% of the property’s market value. However, some cash buying companies may offer more or less money depending on their business model and investment strategy.

How Long Does it Take for a Cash Buyer to Close?

One of the biggest advantages of selling to a cash buyer is the quick turnaround time. Cash buyers can often close within days or weeks after making an offer. This is because they don’t have to go through traditional financing channels that require appraisals, inspections, and other paperwork. If time is of the essence this may be a great way to go,

Steps to Selling a House to a Cash Buyer When You’re Behind on Payments: Tips and Tricks

If you’re struggling to keep up with your mortgage payments, selling your home to a cash buyer can be an excellent option. Not only can it help you avoid foreclosure, but it can also provide you with the funds you need to get back on track financially. Here are some steps to follow when selling your house to a cash investor:

Step 1: Research Potential Cash Buyers in Your Area

The first step in selling your home to a cash buyer is finding potential buyers in your area. You can start by searching online for companies that buy houses for cash or asking for recommendations from friends and family members who have sold their homes recently.

Once you’ve compiled a list of potential buyers, do some research on each one. Check their website and social media pages, read reviews from previous clients, and check if they are registered with the Better Business Bureau (BBB).

Step 2: Contact Cash Buyers and Provide Details About Your Property and Situation

After narrowing down your list of potential buyers, reach out to them via phone or email. Provide details about your property and situation, including how much you owe on your mortgage, how far behind you are on payments, and any other relevant information.

Be honest about your situation so that the buyers can provide accurate offers based on the condition of the property.

Step 3: Schedule a Walkthrough of Your Property with Interested Cash Buyers

Once you’ve received responses from interested cash buyers, schedule walkthroughs of your property with them. During this time, they will assess the condition of the property and determine its value.

Make sure that you prepare for these walkthroughs by cleaning up cluttered areas and making any necessary repairs beforehand.

Step 4: Receive and Review Offers from Cash Buyers

After conducting walkthroughs of your property, interested cash buying companies will provide offers based on the condition of your home. Review these offers carefully and compare them to ensure that you receive the best deal possible.

Consider factors such as the closing date, any contingencies, and whether or not the buyer will cover closing costs.

Step 5: Close the Sale with the Chosen Cash Buyer and Use the Proceeds to Pay off Your Outstanding Mortgage Balance

Once you’ve chosen a cash buyer and accepted their offer, it’s time to close the sale. During this process, you’ll sign paperwork transferring ownership of your property to the buyer.

After closing, use the proceeds from the sale to pay off your outstanding mortgage balance. This will help you avoid foreclosure and get back on track financially.

Do you need a real estate agent to sell your home for cash?

Selling your home can be a stressful experience, especially if you’re behind on loan payments. One option that many homeowners consider is selling their home to flipper. This can be a good choice if you need to sell quickly and don’t want to deal with the hassle of listing your home on the market.

But do you need a real estate agent to sell your home for cash? The short answer is no, you don’t. Here are some talking points to consider:

Real Estate Investors Can Offer Fair Prices

When you work with a real estate investor who buys homes for cash, they will typically offer you a fair cash offer based on the current market conditions. These investors are experienced in the real estate market and know how to value properties without the need for an agent.

Agents Charge High Commissions

While some agents may be able to help you sell your home quickly, they typically charge high commissions that can eat into your profits. If you’re already behind on loan payments, this is probably not something that you want to deal with.

The Decision Depends On Your Personal Preferences

Ultimately, whether or not you use an agent when selling your home for cash depends on your personal preferences and needs. If you have experience selling homes and feel comfortable handling the process yourself, then working with an investor might be the best choice for you. However, if you’re unfamiliar with the process or would prefer someone else handle it for you, then hiring an agent could be beneficial.

Selling Your Home for Cash When You’re Behind on Loan Payments

If you’re struggling to keep up with your mortgage payments, you may be facing preforeclosure, foreclosure, or post-foreclosure processes. It’s important to understand these processes and the consequences of each.

Talking with your mortgage lender is a good first step to explore loan modification and refinancing options. However, if those options don’t work for you, there are other alternatives to consider.

One option is doing a short sale to avoid foreclosure. This involves selling your home for less than what you owe on the mortgage. While it may not be ideal, it can help you avoid the negative impact of foreclosure on your credit score.

Another alternative is selling your home to an iBuyer. Before making this decision, weigh the pros and cons carefully and explore all your options.

If you decide that selling to a cash buyer is the best choice for you, it’s important to find reputable buyers who can offer a fair price for your home. Look for reviews and testimonials from previous clients before making any agreements.

When selling your house to a cash buyer while behind on payments, there are some steps you should follow such as disclosing all information upfront and working with an attorney or title company.

You do not necessarily need a real estate agent when selling your home for cash but having one can make the process smoother especially if they have experience in dealing with cash buyers.

In conclusion, being behind on loan payments doesn’t mean losing everything including your home. There are several alternatives available such as short sales or selling to cash buyers that can help alleviate financial stress. Be sure to do thorough research before making any decisions and seek professional assistance when necessary.

Take action now by exploring all possible alternatives available and finding reputable buyers who can offer fair prices for your property. Urban Street Ventures has been buying houses and 2-50 unit apartments in the LA Metro Area for almost 30 years.   Homeowners to large institutional sellers, all look to Urban Street for fair cash offers with straightforward offer terms.  Once under contract, Urban Street has a track record for on-time and hassle-free cash purchases. Whether driven by market cycles, financial distress, or personal dislocations, Urban Street stands ready to meet the needs of property sellers requiring a quick sale. Get your cash offer now.