With Sell2Rent, you can sell your home to a vetted investor and, if there is enough equity, use the sale to pay off your mortgage at closing and stay as a renter. No one can promise a sale-leaseback will stop a foreclosure. Reach out early: the more time before an auction date, the more options you have. A HUD-approved housing counselor can also help you review your options (hud.gov/findacounselor).
You missed a few mortgage payments. Maybe you lost your job, had a medical emergency, or just hit a hard stretch. Now the letters from your lender are getting serious, and foreclosure feels like it’s closing in. You are not alone. ATTOM reported foreclosure filings on 227,548 U.S. properties in the first half of 2026, up 21% from the first half of 2025 (ATTOM Mid-Year 2026 report, Jul 16, 2026).
What most homeowners don’t realize: there is a window between falling behind and losing your home where you still have real options. One of the most powerful is a residential sale-leaseback.
227,548
U.S. properties with a foreclosure filing, first half of 2026, up 21% year over year (ATTOM Mid-Year 2026 report, Jul 16, 2026)
+14%
U.S. properties with a foreclosure filing, 2025 vs. 2024 (ATTOM Year-End 2025 report, Jan 15, 2026)
7 yrs
How long a foreclosure stays on your credit report (Experian)
About a month
Typical Sell2Rent closing time, depending on paperwork (as of Oct 21, 2026)
Quick Answer
A sale-leaseback lets you sell your home to an investor, use the sale to pay off your mortgage, and stay in your home as a renter under a lease. With Sell2Rent, you receive any remaining equity in cash at closing. No one can promise it will stop a foreclosure or change your credit, and it only works if the sale can close in time.
What Is a Residential Sale-Leaseback?
A sale-leaseback is two transactions at once. The Sale: you sell your home to a vetted investor and receive your equity in cash at closing, after your mortgage is paid off. Sell2Rent connects you with investors and is not the purchaser. The Leaseback: at the same closing, you sign a lease and stay in the home as a renter. No moving van, no disruption to your kids’ school, no uprooting your life.
The sale proceeds pay off your mortgage balance, past-due payments, and closing costs. If there is equity left over, that cash goes directly to you. The result: the sale proceeds can pay off your mortgage, and you stay in your home as a renter.
Curious if your home qualifies?
Most homes with equity (even partial) may be eligible.
Can a Sale-Leaseback Help When You’re Behind on Your Mortgage?
Direct Answer
It can in some cases, but no one can promise it. A sale-leaseback is a voluntary home sale, and if it closes before the foreclosure sale date, the proceeds pay off your lender. Sell2Rent closings take about a month, depending on paperwork, so reach out early. If a sale date is already set, tell us right away and we’ll say plainly whether a sale-leaseback can close in time (about a month, as of Oct 21, 2026).
When a lender begins foreclosure, they set a timeline ending with a foreclosure auction: the point at which you legally lose the home. A voluntary sale can stop that clock at any point before the auction date, as long as the payoff clears escrow in time.
Foreclosure timelines vary by state. Ask your servicer or an attorney how the timeline works in your state. Either way, the earlier you act, the more options you have.
What Happens to Your Credit?
This is where the difference between the two paths is most dramatic. A foreclosure stays on your credit report for 7 years (Experian), which can make it harder to rent an apartment, get a car loan, or qualify for a future mortgage.
A sale-leaseback is a voluntary sale, so it does not add a foreclosure record to your credit report. If the sale closes and covers the payoff, your mortgage is paid off at closing. Payments you already missed can still appear, and no one can promise a specific effect on your score. A HUD-approved housing counselor can help you understand your credit and your options.
The Two Paths: Which One Are You On?
Click to compare what happens if you let foreclosure proceed vs. using a sale-leaseback.
1
First Missed Payment
Your lender charges a late fee. Calls and notices begin. Your credit can be affected.
2
Notice of Default Filed
After missed payments (how many varies by state and servicer), your lender may file a Notice of Default. This becomes a public record. The formal foreclosure process has begun.
3
Notice of Trustee Sale
You receive a formal notice of the auction date. Ask your servicer or an attorney how much time you have in your state.
4
Foreclosure Auction
Your home is auctioned. The home is no longer yours.
5
Eviction and Aftermath
The new owner begins eviction proceedings and you are required to move out. A foreclosure record can stay on your credit report for 7 years (Experian).
💔
Result: the home is sold at auction.
A foreclosure record stays visible for 7 years (Experian).
1
You Reach Out to Sell2Rent
You submit your home details online. No showings, no strangers walking through. A Sell2Rent advisor reviews your situation clearly and without pressure.
2
You Review Your Options
Sell2Rent connects you with investors, who compete with offers, so you can compare more than one. You discuss lease terms: the monthly rent and how long you want to stay.
3
Due Diligence and Title Work
The title company confirms the payoff with your lender. All paperwork is prepared. You review the sale agreement and lease terms before signing anything.
4
Closing Day
You sign the sale documents and your lease at the same closing. At closing, the sale proceeds pay off your mortgage, any remaining equity is paid to you after the fee and closing costs, and you sign your lease to stay as a renter.
5
You Stay Home. You Breathe Again.
You continue living in the same home, neighborhood, and community. You pay monthly rent instead of a mortgage. No disruption to your family or your kids' school.
🏠
Result: you stay in your home as a renter.
If a sale closes and pays off your mortgage before a foreclosure is completed, no foreclosure record is added. That depends on there being enough equity and enough time. Every case is different.
Who Qualifies for a Sale-Leaseback?
Quick Answer
To qualify, you generally need: (1) equity in your home, (2) a property in reasonably good condition, and (3) the ability to pay monthly rent going forward. Your current mortgage status or credit score are not automatic disqualifiers.
The most important factor is equity. Here’s an illustrative example, not an offer or a quote:
- Home value: $380,000
- Mortgage balance owed: $290,000
- Arrears (missed payments, fees): $12,000
- Equity after the mortgage and past-due payoffs: ~$78,000, before the Sell2Rent fee and closing costs
After the Sell2Rent fee (6% of the sale price or $15,000, whichever is greater) and closing costs, the rest is paid to you in cash at closing, and your lease lets you stay in your home. See how the Sell2Rent process works
The earlier you reach out, the more time you have to compare your options.
Talk to a Sell2Rent Advisor
How Is This Different From My Other Options?
Homeowners facing foreclosure have several paths available, but most come with serious trade-offs. Here’s how they compare:
| Option | Can Help With a Foreclosure? | Stay in Your Home? | Credit Impact | Speed | Sell2Rent Sale-Leaseback ✓ |
|---|---|---|---|---|---|
| Loan Modification | ⚠ MaybeLender must approve | ✓ Yes | Varies | Varies | — |
| Refinancing | ⚠ MaybeCredit must qualify | ✓ Yes | Varies | Varies | — |
| Traditional Home Sale | ✓ Yes | ✗ No | Varies | Varies | — |
| Short Sale | ✓ Yes | ✗ No | Varies | Varies | — |
| Bankruptcy (Ch. 13) | ⚠ Temporarily | ⚠ While in plan | Varies | Varies | — |
| Reverse Mortgage | ⚠ If eligibleMust be 62+ | ✓ Yes | Varies | Varies | — |
| Let Foreclosure Proceed | ✗ No | ✗ No | 7 years on your report (Experian) | N/A | — |
| Sale-Leaseback (Sell2Rent) | Possible if the sale closes in time | ✓ YES | If the sale closes and pays off the loan, no foreclosure record is added; missed payments may still show | About a month, depending on paperwork | A sale-leaseback is one option that lets you stay in your home, if it can close in time. |
Why Sell2Rent?
Sell2Rent is a residential sale-leaseback marketplace that connects homeowners with verified investors, with a human-first approach that makes the process clear and stress-free.
- Lease terms designed for you. Your rent and lease length are agreed upon before closing.
- No showings, no open houses. The process is private.
- Transparent pricing. No surprises before you decide.
- Speed when it matters most. Sale-leasebacks with Sell2Rent close in about a month, depending on your paperwork.
- You stay home. Your kids stay in school. Life continues.
Explore related reads:
See if a sale-leaseback makes sense for your home.
No credit check to apply.
Why Reaching Out Early Helps
Fees and past-due interest can build up while a mortgage is behind, which can reduce your equity. According to the Mortgage Bankers Association, the delinquency rate on U.S. residential mortgages rose to 4.44% in Q1 2026, the highest level in years.
If you’re reading this, you’re already ahead. You’re looking for answers. That’s the right instinct.
Frequently Asked Questions
Possibly, if the foreclosure sale has not taken place and the sale can close in time. A sale-leaseback is a voluntary sale, and if it closes before the sale date, the proceeds go to pay off your lender. No one can promise the timing will work, so contact Sell2Rent as soon as possible to review your timeline. Sale-leasebacks with Sell2Rent close in about a month, depending on paperwork.
A sale-leaseback becomes more complicated, because the sale proceeds won't fully cover your mortgage. In this situation, a short sale or loan modification may be more appropriate. Sell2Rent can still help you evaluate your situation and point you toward the right path, even if a sale-leaseback is not the fit.
With Sell2Rent, your monthly rent is agreed in writing before closing, so you know the exact number before you sign anything.
Any equity remaining after your mortgage payoff, past-due amounts and closing costs is paid to you in cash at closing. With Sell2Rent, the offer you review shows these numbers in writing before you decide.
Your lease terms are agreed in writing before closing. Some homeowners stay for years; others use the leaseback as a bridge. What happens after the term depends on your lease, so read the renewal terms before you sign.
A sale-leaseback is a sale, not a foreclosure, so it does not create a foreclosure record on your credit report, and no one can promise a specific effect on your score. If the sale closes and covers the payoff, your mortgage is paid off at closing. Payments you already missed may still appear on your report. A foreclosure can stay on your credit report for 7 years (Experian).
Sell2Rent works with homeowners in all 50 states. Visit sell2rent.com to check availability in your area and submit your home details for a free review.
Sell your house. Stay home. Breathe again.
Sell2Rent exists for exactly this moment.
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Sources: MBA Q1 2026 | ATTOM Mid-Year 2026 and Year-End 2025 U.S. Foreclosure Market Reports | Experian
