Short answer
Not necessarily. First ask your mortgage servicer about forbearance or other relief, and see whether Pennsylvania's HEMAP loan fits. If you do not expect to resume full payments within a couple of years, or the house costs more than you can carry, selling while you still have equity may protect your credit and savings.
Check relief before you sell
The CFPB says that with a temporary setback like job loss, you can request forbearance from your servicer, which pauses or reduces payments for a limited time. Ask what happens at the end of it, because skipped payments usually still have to be repaid in some way.
Call a HUD-approved housing counselor. The service is free and can compare options.
Also look at your own cash runway. Count the months your savings and unemployment benefits can cover the mortgage, taxes and insurance. If the number is short, plan the sale early, while you have choices.
HEMAP is built for hardship
PHFA's Homeowners' Emergency Mortgage Assistance Program is a loan, not a grant, for owner-occupants in one- or two-family homes who are at least 60 days behind, received an Act 91 notice, had favorable credit history for five years and face hardship beyond their control such as job loss, illness or divorce. They must show a reasonable prospect of resuming full payments within 24 or 36 months. The maximum loan is 60,000 dollars.
If you expect to find work soon, this may keep you in the house. If you do not, borrowing more may not help.
Ask the counseling agency how long the process takes. PHFA lists several steps with deadlines, so do not wait until the last week to start the paperwork.
Bankruptcy is another tool
The U.S. Courts say Chapter 13 can stop foreclosure and cure delinquent payments over three to five years, as long as new payments are made on time. It needs steady income. Talk to a bankruptcy attorney before deciding. It is a serious step with credit consequences.
When selling makes sense
Selling makes sense when your income will not cover the payment for the foreseeable future, when equity will disappear to arrears and fees if you wait, or when you want to rent and rebuild. The CFPB says that when you owe less than the house is worth, selling is typically better for your money and credit than foreclosure.
Build a net sheet: payoff, arrears, transfer tax, any commission and moving costs. Equity is what is left.
Selling early can protect equity that fees and interest would otherwise eat. Waiting can also be right if a job offer is close. The key is to decide with numbers, not hope.
Where a cash sale fits
A cash sale can stop the monthly bleed fast. 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. If you can wait and the house is in good shape, a listing may bring more. Call 267-329-0084 to get a number to compare.