Why this happens to people who have always paid on time
Financial pressure doesn't always begin with one major event. Many homeowners make their payments on time for years before something changes. Property taxes increase. Homeowners insurance goes up. An escrow shortage raises the monthly payment. Or the mortgage payment stays exactly the same while household income decreases.
Being current on a mortgage doesn't necessarily mean the payment is still affordable. Plenty of people make every payment on time while watching the amount left over each month get smaller.
Nobody has to wait until a payment is missed to look at their options. Exploring your options early usually gives you more choices.
Why a mortgage payment can increase when the loan hasn't changed
One common reason is escrow. An escrow account is typically used to pay property taxes and homeowners insurance. The mortgage servicer estimates those expenses, collects a portion with each monthly payment, and periodically reviews the account.
If property taxes or insurance premiums increase, the monthly escrow payment may increase as well. If the previous estimate was too low, there may also be an escrow shortage that has to be repaid. Together, those changes can raise a monthly payment by hundreds of dollars even though the principal and interest have not changed.
An adjustable-rate mortgage can also increase when its interest rate resets. In other situations, the mortgage hasn't changed at all — household income has decreased.
- Higher property taxes
- Increased homeowners insurance premiums
- An escrow shortage
- An adjustable-rate mortgage resetting
- A reduction in household income
Start with free help before considering an offer from us
Before deciding to sell, consider speaking with a HUD-approved housing counselor. Counseling is free or very low cost, and the counselor has no financial interest in whether you sell your home.
A counselor can help you understand options that may allow you to keep your home, including repayment plans, forbearance and loan modification. They may also be able to communicate with your mortgage servicer on your behalf.
If a housing counselor helps you find a way to comfortably keep your home and you never need to call us, that's a good outcome.
It's also worth contacting your mortgage servicer as early as possible. Some options may be easier to pursue before you fall behind, and simply asking about them doesn't commit you to anything.
When selling may make sense — and when it may not
Selling isn't automatically the best solution just because the payment has become difficult. The right option depends on your equity, the condition of the property, how quickly you need to act, and how much money would remain after paying off the mortgage and covering the costs of selling.
The starting point is simple: market value minus the mortgage payoff minus selling costs. That calculation doesn't determine everything — liens, timing, foreclosure status, property condition and your goals also matter — but it gives you a clearer picture of what options may be realistic. Here are four common situations and what may make the most financial sense in each.
| Situation | What may make the most sense |
|---|---|
| Real equity, the house is in good condition, and there is enough time | Listing with a real estate agent may produce the highest net proceeds. If the numbers show you would likely walk away with substantially more by listing, we'll tell you. |
| Real equity, but repairs are needed or time is limited | A cash sale may make sense if you don't want to make repairs, prepare the property for showings, or wait for a traditional buyer. You may trade some potential sale price for speed and certainty. See how a cash sale compares with listing traditionally. |
| Little or no equity | A discounted cash offer may not be enough to pay off the mortgage. If you know your payoff amount, tell us up front and we can quickly determine whether a cash sale is even realistic. |
| A foreclosure sale is already scheduled | If a foreclosure sale has already been scheduled, the timeline becomes critical. See our Texas foreclosure timeline for more detail. |
A simple example of how the numbers work
The following numbers are hypothetical and are only intended to illustrate the difference between selling traditionally and selling for cash.
Suppose a home could realistically sell for $280,000 in its current condition and the mortgage payoff is $247,000. If it is listed and the total commissions and other selling costs come to approximately $22,000, roughly $11,000 would remain before accounting for any repairs or other expenses.
Now suppose a cash buyer offers $252,000. After paying off the $247,000 mortgage, approximately $5,000 would remain — but without the repair, preparation or listing requirements.
Now change the mortgage payoff to $271,000. Suddenly neither example produces enough to comfortably cover the loan and the selling expenses. Nothing else changed — the higher payoff changed the outcome.
That is why the payoff matters so much. It helps determine whether a traditional sale, a cash sale, or another option altogether is realistically available.
Start by finding out the mortgage payoff
You can request a payoff statement directly from your mortgage servicer. Compare that amount with what the property could realistically sell for in its current condition, and subtract what it would cost to sell.
If you contact us, having the payoff amount available lets us give you a far more useful answer during the first conversation.
What a cash sale can and cannot do
What it can do
A cash sale can eliminate the mortgage obligation once the transaction closes and the loan is paid off. You can typically sell the property as-is, without making repairs, preparing it for showings, or waiting for a buyer to obtain traditional financing.
If the sale proceeds exceed the mortgage payoff and the other amounts due at closing, the remaining proceeds belong to the seller.
What it cannot do
A cash sale cannot create equity that isn't there. If the mortgage payoff is higher than what the property can realistically sell for, a discounted cash offer may not be enough to satisfy the loan.
In that situation, other options may need to be explored. A short sale, for example, requires lender approval and cannot be guaranteed. A HUD-approved housing counselor may also be able to help you explore options for keeping the home.
We also don't negotiate with your mortgage company on your behalf. In a normal sale, the title company obtains the payoff information from your servicer and pays the mortgage from the sale proceeds at closing. We never charge you to speak with us or to receive an offer.
What we do — and what we won't do
We evaluate what the property could reasonably sell for after repairs, estimate the cost of those repairs, and account for the costs involved in holding and reselling it. We'll explain how we arrived at the offer so you can decide whether it makes sense for you.
We won't charge you for an offer, a property visit, or simply talking with us.
Most importantly, we'll tell you when selling to us probably isn't your best option. If listing the property, working with your mortgage servicer, or speaking with a housing counselor appears to make more sense, we'll say so.
Call these before you call us
These organizations are not affiliated with us, and they don't benefit financially if you sell your home. They may be able to help you understand your mortgage, foreclosure-prevention options, or other alternatives to selling. If one of them helps you keep your home and that's what you want, you may not need to sell at all.
Free or very low-cost counseling, nationwide. TTY 800-877-8339.
Homeowner's HOPE Hotline
Nonprofit HUD-approved counselors via HOPE NOW.
Texas Department of Housing and Community Affairs
Foreclosure prevention resources for Texas homeowners.
Plain-language Texas foreclosure fact sheet.
FAQ
Do I have to be behind on payments before this is worth a call?
No. In many cases it's better to explore your options before you miss a payment. Your mortgage servicer or a HUD-approved housing counselor may have options available before you fall behind, and talking with us never obligates you to sell.
What if I owe more than the house is worth?
If the mortgage payoff is higher than what the property can realistically sell for, a discounted cash offer probably won't solve the problem. Depending on your circumstances, you may need to explore options such as a lender-approved short sale or alternatives that allow you to remain in the home — a HUD-approved housing counselor can help you understand those. If you know your payoff amount when you contact us, we can usually tell you quickly whether a cash sale is realistic.
Can you just take over my payments?
Transactions in which a buyer takes a property while the existing mortgage stays in the seller's name do exist, but they are more complicated than a standard cash sale and carry real risk for the seller: the loan remains your responsibility, and if the buyer stops paying, it is your credit and your name on the line. If you are considering that type of arrangement with any buyer, make sure you fully understand the agreement and have an independent real estate attorney review it before signing.
Do you charge anything?
No. There is no charge to request an offer or have us look at the property. We don't charge homeowners any upfront fee to receive a cash offer, and anyone in this business who does should be treated as a warning sign.
Will selling affect my credit?
How a home sale affects your credit depends on your individual mortgage history and how the account is reported by your servicer. We can explain the real estate transaction, but we aren't credit counselors or financial advisors. For questions about your specific credit situation, speak with your mortgage servicer or a qualified housing counselor.
Is there free help if I would rather keep the house?
Yes. A HUD-approved housing counselor should be one of your first calls if your goal is to keep your home. Counseling is free or very low cost, and a counselor can help you explore options such as repayment plans, forbearance and loan modification. You can reach HUD's housing counseling line at (800) 569-4287.
Important: we are real estate investors, not attorneys, housing counselors or financial advisors. Nothing on this page is intended as legal or financial advice. Your available mortgage options depend on your individual circumstances and on your lender or servicer. A HUD-approved housing counselor can help you understand options for keeping your home.
