If I’m currently in default on my mortgage, can I list and try to sell my home through the normal real estate marketplace.

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I’m currently in default on my mortgage, can I list and try to sell my home through the normal real estate marketplace.

I am probably only weeks away from being served with foreclosure papers which will instruct me to appear in court for the conference.

Asked on March 30, 2017 under Real Estate Law, New York


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, until you are actually foreclosed upon, you can legally list and sell your home. You will have to disclose the fact that you are in default and foreclosure may be pending to any potential buyers, however; otherwise, you will be committing fraud, since you will not be disclosing a material or important issue affecting the property and ownership of it, which fraud could let them rescind (undo) the sale and/or sue you for monetary compensation. And if the proceeds of the sale do not fully pay off your mortgage (e.g. it is a "short sale"), the lender could sue you for the balance.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption