Forbearance Ending? How Sioux Falls Owners Can Use a Cash Sale to Avoid a Payment Shock

How Sioux Falls Owners Can Use a Cash Sale to Avoid a Payment Shock

When the COVID-19 pandemic hit, many Sioux Falls homeowners leaned on mortgage forbearance to stay afloat. According to the Mortgage Bankers Association, more than 8.5 million borrowers entered forbearance programs in 2020. While most have exited, thousands of homeowners across the country, including here in South Dakota, are still working through the aftermath.

As forbearance periods end, many owners face a hard reality: once-lowered or paused payments are about to reset. This can mean a sudden jump in monthly obligations, a balloon payment, or pressure from lenders to settle arrears. For some, the thought of catching up feels impossible. The good news? If you’re in Sioux Falls and forbearance is ending, selling your home for cash could be the lifeline you need to avoid financial shock.

Why Forbearance Payments Can Feel Like a Shock

Forbearance isn’t forgiveness. Once the pause ends, lenders want repayment, whether in a lump sum, through higher monthly installments, or a loan modification. Even if your income has stabilized, these added costs can stretch a budget thin.

In Sioux Falls, the median home price is around $319,000, and many mortgages reflect that. Just a few months of missed payments can add up to thousands of dollars. For families already juggling utilities, groceries, and rising living costs, catching up isn’t always realistic.

Why a Cash Sale Is Worth Considering

Selling your house the traditional way, through an agent, often takes months, requires repairs, and involves commissions. But when time and money are short, those options may not work. That’s where a cash home buyer comes in.

  • Speed: Cash buyers can often close in as little as 7–14 days.
  • No Repairs Needed: Homes are purchased “as-is,” whether you’ve kept up with maintenance or not.
  • Certainty: Unlike traditional buyers, there are no financing contingencies that risk the deal falling through.
  • Relief: Selling before foreclosure or late fees stack up lets you protect your credit and walk away with financial clarity.

Real-Life Situations Where a Cash Sale Makes Sense

  • Job or Income Loss: If your financial picture hasn’t rebounded since taking a forbearance, selling fast keeps you from falling into deeper debt.
  • Balloon Payments: Some lenders expect a lump sum at the end of forbearance, which can be tens of thousands of dollars.
  • Relocation or Downsizing: If life changes mean you don’t need as much space, selling for cash lets you move without the stress of long timelines.
  • Avoiding Foreclosure: According to ATTOM Data, South Dakota foreclosure filings rose slightly in 2023. Acting early with a cash sale keeps you in control of your timeline.

The Process: Selling for Cash in Sioux Falls

With ReSolve Real Estate Solutions, the process is designed to be simple and stress-free:

  1. Reach Out: Call us or fill out our form with a few details about your property.
  2. Home Visit or Virtual Walkthrough: We’ll assess the condition without judgment, no need to fix anything.
  3. Receive a Cash Offer: Based on your home’s current value and the local market.
  4. Choose Your Timeline: Close in a week or take longer if you need time to transition.

Protecting Your Credit and Peace of Mind

One of the biggest fears homeowners face after forbearance is the impact on their credit. Late or missed payments can linger on your report for years. By choosing a cash sale, you avoid foreclosure proceedings, safeguard your credit from further damage, and free yourself from ongoing stress.

FAQs: Forbearance and Cash Home Sales in Sioux Falls

Q1: Can I sell my house in Sioux Falls if I’m still in forbearance?
Yes. You can sell during or after forbearance. Proceeds from the sale will pay off the remaining mortgage balance.

Q2: Will selling for cash stop foreclosure?
Yes. If you act before the foreclosure process completes, a cash sale can satisfy your lender and prevent long-term damage to your credit.

Q3: Do I need to make up missed payments before selling?
No. The sale proceeds will go toward your outstanding balance, so you don’t need to catch up first.

Q4: How fast can I close with a cash buyer in Sioux Falls?
In many cases, you can close in as little as 7 days, giving you control over your timeline.

Q5: Are there fees or commissions when selling for cash?
No. With ReSolve Real Estate Solutions, there are no agent commissions or hidden fees, and we cover closing costs.

Don’t let expiring forbearance catch you off guard. ReSolve Real Estate Solutions helps Sioux Falls homeowners sell quickly and move forward with confidence. Call us today at 605-370-5190 for a no-obligation cash offer.