Short answer
Yes, if you still own the house you can sell it, and if you have equity, selling is generally better for your money and credit than foreclosure. Call your servicer and a HUD-approved counselor now. Pennsylvania's Act 91 notice and the HEMAP loan program may give you time. Do not ignore court papers.
Call your servicer and a counselor
The CFPB advises homeowners who cannot pay or fear missing a payment to call the mortgage servicer right away and contact a HUD-approved housing counseling agency for free help avoiding foreclosure. Early contact opens more options than waiting until a lawsuit.
Write down every conversation, and keep every letter.
Ask your servicer for the exact amount to reinstate and the exact payoff, in writing. Those two numbers tell you whether keeping the house or selling it makes more sense.
Act 91 and HEMAP
Pennsylvania's Homeowners' Emergency Mortgage Assistance Program, created by Act 91 of 1983, is a loan program to prevent foreclosure. It is not a grant. PHFA says applicants must be at least 60 days delinquent, have received an Act 91 notice from their lender, own a one- or two-family owner-occupied Pennsylvania home, have a favorable mortgage credit history over the previous five years, face a hardship beyond their control and show a reasonable prospect of resuming full payments within 24 or 36 months.
The face-to-face meeting with a counseling agency is due within 33 days of the Act 91 notice date. The maximum loan is 60,000 dollars. PHFA can be reached at 1-800-342-2397.
Selling instead
The CFPB says that if your home is worth more than you owe, selling is typically better for your money and credit than foreclosure, and many struggling homeowners have enough equity for a traditional sale. A sale pays off the mortgage, the arrears and costs, and you keep what is left.
If the house is worth less than you owe, your lender must approve any sale for less than the payoff. A housing counselor or attorney can explain the choices.
If you list, ask your agent and the servicer how a pending closing affects the foreclosure timeline. A sale that is moving may be treated differently from one that is only an idea.
Selling before a sheriff's sale
A voluntary sale is a normal sale. Pennsylvania's Seller Disclosure Law exempts foreclosure sales, but not your own listing or cash sale before one. Keep making progress with the servicer, because a signed contract with a closing date may help you ask for time. Ask your attorney or counselor to confirm.
Do not ignore court papers. Missing a response deadline can limit your options.
Where a cash sale fits
Kaizen Home Buyers buys as-is, makes a cash offer within 24 hours, charges no agent commission and typically closes in 14 to 30 days or on your date. When time is short, that can fit. When you have months and equity, a listing may net more. Call 267-329-0084 and tell us your payoff and where you are in the process.