Yes, it can. Home equity is what your home is worth minus what you owe, so unpaid balances, fees and legal costs can shrink it even when your home's value holds steady. The earlier you look at your numbers, the more choices you have. Sell2Rent is a platform that connects homeowners and investors, and a sale-leaseback, where you sell and stay as a renter, is one option among several. If money is tight, your lender or a HUD-approved housing counselor is a good first call too.
This is your home and your timeline. Nothing here asks you to rush.
How does home equity shrink while you wait?
Equity is a large number for many households. Homeowners with a mortgage held an average of about $310,000 in equity as of the second quarter of 2026 (Cotality, Sep 10, 2026). When money gets tight, waiting can feel like the safer choice. That is a very human reaction, and it is not a failing.
The cost of waiting is that time can add to what you owe. The Consumer Financial Protection Bureau (CFPB) notes that the costs of a completed foreclosure generally include late charges, title fees, property maintenance charges and legal fees, and that a foreclosure stays on a credit report for seven years (CFPB, Jan 20, 2023).
Here is a hypothetical worked example. It is illustrative only, not a prediction, and not drawn from any real homeowner or Sell2Rent transaction.
| Illustrative, same home | Look at options early | If the balance keeps growing |
|---|---|---|
| Home value | $650,000 | $650,000 |
| Mortgage owed | $150,000 | $165,000 |
| Fees and costs | $0 | $10,000 |
| Equity left (before selling costs) | $500,000 | $475,000 |
In this example the amount owed grows by $15,000 from missed payments, late charges and interest, and fees and costs add $10,000. Selling costs are left out of both columns to keep the math simple. Your numbers will differ, and an advisor can give you yours.
Who can help first?
Generally, the legal foreclosure process cannot start until you are at least 120 days behind on your mortgage. After that, the time until an actual sale varies by state (CFPB, last reviewed Jan 2, 2025).
If payments are getting hard, contact your lender or mortgage servicer first and ask what help they offer. You can also contact a HUD-approved housing counselor, who can give independent advice, often at little or no cost. The CFPB's Find a Housing Counselor tool lists approved agencies. You can also call the CFPB at 1-855-411-CFPB (2372) to be connected to a HUD-approved agency near you.
Why does selling feel like losing?
Selling a home rarely feels like a simple money step. It can feel like closing a chapter: the neighborhood, the school run, the street your family knows. Many homeowners wait for that reason, and it makes sense. For some, a sale-leaseback can keep what makes the house feel like home: you sell the home, receive your equity as cash at closing and keep living there as a renter. Sell your house. Stay home. Breathe again.
What options do you have besides waiting?
The CFPB has noted that many homeowners, including some facing foreclosure, have enough equity that a traditional sale could be a better alternative to foreclosure (Jan 20, 2023). Here is how the common paths compare:
| Option | What it means | Keep in mind |
|---|---|---|
| Talk with your lender or servicer | Ask what payment help they offer | Options depend on your loan |
| Traditional sale | List the home with an agent and move on your timeline | You move, and sale costs and repairs may apply |
| Sale-leaseback | Sell to an investor, receive your equity as cash at closing and stay as a renter | You give up ownership and future appreciation, you pay rent, and there is no right to repurchase |
| Home equity loan or HELOC | Borrow against the home | New debt, a credit check and another monthly payment |
How does a Sell2Rent sale-leaseback work?
Sell2Rent is not the purchaser. We connect sellers with investors who buy the home and rent it back to you. There are three steps:
- Get your offer. A free evaluation with an advisor and a realistic value estimate based on today's market.
- Choose your option. Stay as a renter, or sell and move out.
- Get your money. Cash at closing, in about a month, depending on how quickly the paperwork comes together (Sell2Rent, as of Oct 21, 2026). Stay home, or move to your next one.
Equity matters, not credit. Being behind on payments or having damaged credit does not disqualify someone. Selling can pay off what you owe, but we never promise an outcome. Call early: the more time before an auction date, the more options you have. A person reviews every case.
Here are the tradeoffs up front. A sale-leaseback is a true sale, so you give up ownership and future appreciation. Sell2Rent does not offer a right to repurchase, and any future buyback would be a separate agreement with the investor, at their discretion. As a renter you are a renter like any other: failure to pay rent could result in eviction, so the lease should work for your budget. Lease terms are agreed in writing before closing. Sell2Rent charges 6% of the sale price or $15,000, whichever is greater, paid at closing and disclosed upfront. Offers can come from a network of 13,000+ investors (Sell2Rent, as of Oct 21, 2026).
The Federal Trade Commission's October 3, 2024 alert on sale-leasebacks gives advice we share: take your time, read the fine print, and have a lawyer or a trusted person review the documents. Our sale-leaseback overview explains the basics.
A free evaluation shows your real numbers.
Does your home qualify?
A sale-leaseback fits some homeowners and not others. Here are the basic qualifying rules:
| Rule | Requirement |
|---|---|
| Property type | Single-family home, townhouse or condo |
| Value | Under $1.5M |
| Equity | About 30% or more equity |
| Year built | After 1920 |
| Lot | Under 1 acre |
| Ownership | You are the legal owner |
If your home is outside these rules, we say so and point you to the option that fits, such as a trusted local realtor, a specialist or our own team for situations like short sales. Read more in our eligibility guide or try the true cost calculator.
What does acting early look like?
A few quiet steps, at your own pace:
- Find out what your home is worth and what a sale could put in your pocket.
- Call your lender or servicer and ask what options exist.
- Talk with a HUD-approved housing counselor for independent advice.
- Ask an attorney or a trusted person to read anything before you sign.
You do not need a plan to take the first step.
Frequently asked questions
Can waiting reduce my home equity?
Yes. Equity is what your home is worth minus what you owe, so unpaid balances, late charges, interest and legal costs can reduce it even if your home's value holds steady. An advisor can show you your own numbers.
How early should I act if I am struggling to make mortgage payments?
The earlier you act, the more options you have. Contact your lender or mortgage servicer to ask what help they offer, and consider a HUD-approved housing counselor. Generally, the legal foreclosure process cannot start until you are at least 120 days behind (CFPB, last reviewed Jan 2, 2025).
Can a sale-leaseback help if I am behind on payments?
Being behind on payments does not disqualify you, because equity matters, not credit. Selling can pay off what you owe, but Sell2Rent never promises an outcome. Call early: the more time before an auction date, the more options you have. A person reviews every case.
Can I buy my home back after a sale-leaseback with Sell2Rent?
Sell2Rent does not offer a right to repurchase. Any future buyback would be a separate agreement with the investor, at their discretion, and you should not count on it.
Ready to see where you stand?
There is no pressure here. A free evaluation shows what a sale-leaseback could look like for your home.
Start My Free Evaluation, or read how it works first.
Disclosure
Sell2Rent is not the purchaser. We connect sellers with investors. With Sell2Rent, there is no right to repurchase. Failure to pay rent could result in eviction. Sell2Rent is not a real estate brokerage, financial advisor, or investment advisor. This information is for educational purposes only and should not be considered legal, financial, or real estate advice. Sell2Rent may work with partners who provide related services, and in some cases, Sell2Rent may receive compensation for referrals. Communications may be recorded and monitored.
Sources
- Cotality, "Record home equity builds, yet remains untouched by borrowers" (Homeowner Equity Insights Report, Q2 2026), Sep 10, 2026. https://www.cotality.com/press-releases/home-equity-q2-2026
- Consumer Financial Protection Bureau, "How long will it take before I'll face foreclosure if I can't make my mortgage payments? What is the foreclosure timeline?", last reviewed Jan 2, 2025. https://www.consumerfinance.gov/ask-cfpb/how-long-will-it-take-before-ill-face-foreclosure-if-i-cant-make-my-mortgage-payments-what-is-the-foreclosure-timeline-en-1849/
- Consumer Financial Protection Bureau, "For many struggling mortgage borrowers with home equity, selling their home could be an alternative to foreclosure", Jan 20, 2023. https://www.consumerfinance.gov/archive/blog/for-many-struggling-mortgage-borrowers-with-home-equity-selling-their-home-could-be-an-alternative-to-foreclosure/
- Consumer Financial Protection Bureau, Find a Housing Counselor. https://www.consumerfinance.gov/find-a-housing-counselor/
- Federal Trade Commission, "Risky business: offers to cash out your home equity through a 'sale-leaseback'", Oct 3, 2024. https://consumer.ftc.gov/consumer-alerts/2024/10/risky-business-offers-cash-out-your-home-equity-through-sale-leaseback
- Sell2Rent: 13,000+ investors in the network and sale-leasebacks close in about a month, as of Oct 21, 2026. Fee, qualifying rules and homeowner answers: https://www.sell2rent.com
- The example figures in the table are illustrative and are not drawn from any source or from any real homeowner.
