Can I sell my house if I'm behind on payments in Arizona?

Step 1: Find out what you actually owe

Call your servicer and ask for a written payoff statement good through a date about 30 days out. It shows the principal, interest through that date, late fees, any escrow shortage, and "corporate advances" such as property inspections or attorney fees once foreclosure has started. The payoff is usually higher than the balance on your monthly statement.

Then add any second mortgage or HELOC, past-due property taxes, HOA balances, and liens. That total is what the sale has to cover.

Step 2: Estimate what the house will bring

Online estimates assume average condition, so treat them as a ceiling for a house that needs work. If you list, plan on commissions, closing costs, and repair credits; our guide on what it costs to sell with an agent walks through them. If you sell for cash, ask the buyer for the net figure in writing.

Step 3: Check the calendar

Where you are in the process sets how much time you have:

• Under 120 days late, no notice: time to list or sell on your schedule. Federal rules generally prevent a first foreclosure filing before the loan is more than 120 days delinquent.
• Notice of trustee's sale recorded: the sale can be held 90 days or more after recording. A listing may still work early in that window; later, a cash sale is usually the realistic option.
• Under 30 days to the sale: only a fast cash closing, reinstatement, or a postponement will help. Ask the trustee whether they will postpone for a signed contract. They don't have to.

A worked example

An illustration only, not an offer:

• Loan balance: $248,000
• Missed payments, late fees, and advances: $11,500
• Unpaid HOA dues: $1,800
• Total to pay off at closing: $261,300
• Cash sale at $305,000 with no commission and buyer-paid closing costs: about $43,700 to the seller

What if the house is worth less than the payoff?

Then a regular sale can't close unless you bring cash or the lender agrees to take less, which is a short sale. A short sale or a deed in lieu needs lender approval, and forgiven debt can have tax consequences (IRS Publication 4681). A loan modification may be a better fit if you want to stay. A HUD-approved housing counselor can help you compare options at no cost.

Will selling stop the late payments from showing?

No. Late payments already reported stay on your credit history. What a sale avoids is a foreclosure, which is usually more damaging, and a possible deficiency on loans that Arizona's anti-deficiency rules don't cover.

Questions to ask any buyer

• Will you put the net to me, after all payoffs, in writing?
• Who pays the closing costs?
• Which title company, and when will you open escrow?
• How long is the inspection period, and can the price change after it?
• Can we close before my sale date, with room to spare?

Dealing with this now? Behind on the mortgage in Phoenix · Sell before a Phoenix foreclosure sale

General information for Arizona homeowners, not legal, tax, or financial advice. Huge Cash Offer is a home buyer, not a law firm, lender, or housing counselor.