Kairos Service LLC · Michelle Lee, Broker
Can You Sell Your House If You're Behind on Mortgage Payments?
By Michelle Lee, Founder & Managing Broker
Kairos Service LLCIf you have missed a mortgage payment, or several, you are probably carrying a lot right now: the worry, the letters in the mailbox, the calls you would rather not answer. First, take a breath. Falling behind is more common than most people realize, and it does not mean the story is over. For many homeowners in the Kansas City area, Topeka, Wichita region, the question is simple: can I still sell my house if I'm behind on my payments?
In many cases, yes. Here is how it generally works, what to watch for, and where to find free, trustworthy help.
Yes, you can usually still sell a home that is behind on payments
Being behind does not stop you from owning the house, and as long as you hold the title you can generally list it for sale. The sale proceeds go first to pay off the mortgage and any other liens, and whatever is left over is yours. The Federal Trade Commission notes that if you have a pending sales contract, or can show you are putting your home on the market, your servicer or lender might postpone foreclosure proceedings. It is not a promise, which is why talking with your servicer early matters. Source: FTC: Trouble Paying Your Mortgage or Facing Foreclosure?
The key number is your equity
Equity is what your home is worth minus everything owed against it. The FTC suggests getting an appraisal (or looking at truly comparable recent sales), adding up all balances secured by the home, including any home equity loan, and subtracting. If the result is above zero, you may be able to sell, pay everything off and walk away with money. If the home is worth less than you owe, a lender-approved short sale may be worth discussing. We cover that in our guide to short sales in Kansas City.
How much time do you have?
Less than you would like, but often more than you fear. Two federal and state facts help frame it.
- The 120-day rule. Under federal mortgage servicing rules, the legal foreclosure process generally cannot start until you are more than 120 days behind. Source: Consumer Financial Protection Bureau. After that, the timeline depends on your state.
- Servicer outreach. HUD notes that servicers must give you written information about loss mitigation options within 45 days of delinquency and assign a point of contact. Source: HUD Exchange.
Kansas and Missouri work differently
This matters if you live in the Kansas City metro, because the state line changes the process.
- Kansas foreclosures go through the courts, and a sheriff's sale is ordered by the court. After the sale, Kansas law gives the owner a redemption period, generally 12 months, though the court is directed to order three months in certain situations, such as when the default occurred before one-third of the original loan was paid. Details are in K.S.A. 60-2414.
- Missouri commonly uses a power-of-sale process under a deed of trust, which does not require a lawsuit. The trustee must mail notice of the sale at least 20 days before it (RSMo 443.325), and the property can be redeemed by payment before the sale (RSMo 443.400).
Your own loan documents and a local attorney can tell you exactly where you stand. For a deeper look at your options, see our guide on how to stop foreclosure in Kansas and Missouri.
What does it cost to wait?
Every month matters. The FTC explains that late fees and extra interest can be added to what you owe, and servicers can charge for default-related services such as inspections, lawn care and repairs, which can add hundreds or thousands of dollars to the balance. Foreclosure itself also adds costs. In many states you may also owe a deficiency judgment, the gap between what you owe and the auction price. That is one reason selling on your own terms, before an auction, can protect equity that would otherwise disappear.
Your options besides selling
Selling is not the only path, and it is worth knowing the others before you decide. The FTC lists reinstatement, forbearance, a repayment plan and a loan modification, and HUD adds deferments and, for FHA loans, partial claims. Some of these work well when the hardship is temporary. If the payment is simply more than your budget can carry long term, a sale may give you a cleaner reset. A free HUD-approved housing counselor can walk through what applies to your loan type. You can find one at hud.gov/counseling or by calling (800) 569-4287.
A word on scams
Homeowners in trouble are often targeted. The FTC warns that no one can guarantee they will stop a foreclosure, and anyone who says they can, especially if they ask for money first, is a scam. Be very careful about signing anything that transfers your deed. Read every page, and have an attorney or counselor look it over.
What a calm first week can look like
- Open the mail and gather your loan statements, any default or foreclosure notices, and your last mortgage payment record.
- Call your servicer and ask what options exist. Keep notes of who you spoke with and when.
- Get a realistic idea of your home's value and your total payoff.
- Talk to a HUD-approved counselor and, if a court date or sale date is set, an attorney.
- Decide whether keeping, selling or another route fits your family best.
How Kairos Service LLC Can Help
Michelle Lee, Founder and Managing Broker of Kairos Service LLC, is a licensed real estate broker in Kansas and Missouri, a REALTOR®, and holds the SFR® (Short Sales and Foreclosure Resource) certification. With 26 years in HUD, foreclosure and distressed-property work, she has helped many families sort through exactly this situation. Kairos is a brokerage: we do not buy houses ourselves, but we can help you understand what your home may be worth, explain your selling options, and connect you with other resources. There is never any pressure.
- Request a no-pressure review: Home Evaluation
- Learn more about selling a distressed home
- Call 888-343-5550 or email kchomes4u.net@gmail.com
- Office: 5251 W 116th Pl #200, Leawood, KS 66211
Frequently Asked Questions
Can I list my house if I'm already in foreclosure?
Generally you can, as long as you still hold title. Timing matters, and the process differs between Kansas and Missouri, so speak with your servicer and an attorney about deadlines.
Will selling hurt my credit?
Missed payments can already affect your credit. According to the FTC, a foreclosure is likely to be reported for seven years and can have a greater effect than a short sale or deed in lieu. Selling and paying the loan in full is typically the least harmful path.
What if I owe more than the house is worth?
You may be able to ask your lender to approve a short sale. Ask for any agreement about the remaining balance in writing.
Do I have to leave my home right away?
Not usually. In Kansas the owner generally keeps possession during the redemption period, and the FTC advises staying in the home during the loss mitigation process because moving out could affect the help you qualify for. Check your specific situation with an attorney.
This article is for general information only and is not legal, tax or financial advice. Laws, timelines and programs vary and change, and every situation is different. Please consult a licensed attorney, a tax professional or a HUD-approved housing counselor about your circumstances. Kairos Service LLC is a real estate brokerage and does not guarantee any outcome.
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- Call
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- Office
- 5251 W 116th Pl #200
Leawood, KS 66211
Free home evaluation request
Request your free evaluation
We respond quickly. Your information stays private.
- Call
- 888-343-5550
- kchomes4u.net@gmail.com
- Office
- 5251 W 116th Pl #200
Leawood, KS 66211