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Navigating Foreclosure in Chicago • September 19, 2025

Selling Your Home Before Foreclosure

by Molly Heyen

When mortgage payments become overwhelming, some propertyowners believe foreclosure is inevitable. But in many cases, you still have time to take control by selling before the foreclosure process is complete.

This option can allow you to avoid the long-term financial consequences of foreclosure, protect your credit as much as possible, and in some situations, even walk away with equity.

How It Works

If you’re behind on payments but still have equity in your home, selling the property on the open market may be the best path forward. With the help of a real estate professional, you can list your property, attract buyers, and use the sale proceeds to pay off your mortgage.

The key is acting quickly. Once foreclosure proceedings advance, your time frame and options become limited.

Benefits of Selling Before Foreclosure

  • Protect Your Credit: A traditional home sale has less impact on your credit than a foreclosure.

  • Preserve Equity: If your property value is higher than your loan balance, you may keep any remaining equity after the sale.

  • More Control: You have a say in the process, rather than leaving the decision to the bank.

  • Fresh Start: Selling allows you to move forward without the weight of a foreclosure on your record.

What to Keep in Mind

  • Timing matters. The sooner you act, the more options you’ll have.

  • If you owe more than your home is worth, a short sale may be necessary instead of a traditional sale.

  • Working with an experienced agent who understands distressed property sales can help ensure a smoother process.

Final Thoughts

Selling your property before foreclosure is not always easy, but it can be one of the most empowering choices available. It helps you move forward on your own terms and often with far better outcomes than letting the foreclosure process run its course.

If you’re wondering whether selling before foreclosure is the right path for you, I’d be glad to walk you through the process and help you evaluate your options.

Contact me today to start the conversation.

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