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Facing Foreclosure in Pennsylvania: Giving Your House Back to the Bank vs. Selling As-Is for Cash

The prospect of facing foreclosure in Pennsylvania can be overwhelming and emotionally challenging. It’s a situation that many homeowners hope to avoid, but sometimes circumstances make it difficult to continue paying the mortgage. When foreclosure seems imminent, homeowners often wonder about their options. One choice is to give the house back to the bank, while another option is to sell it as-is for cash to reputable home buyers like 717 Home Buyers. In this article, we’ll explore the pros and cons of these two choices and provide guidance on when each option may be suitable.

Part 1: Giving the House Back to the Bank (Deed in Lieu of Foreclosure)


  1. Avoiding a Lengthy Foreclosure Process: Foreclosure can be a lengthy and stressful process, involving legal proceedings and court appearances. Giving the house back to the bank, also known as a deed in lieu of foreclosure, allows you to expedite the process and avoid the drawn-out legal battle.
  2. Preserving Your Credit: While a deed in lieu of foreclosure will still have a negative impact on your credit, it is generally less damaging than a full foreclosure. It demonstrates to future creditors that you took proactive steps to resolve the situation.
  3. Relief from Ongoing Financial Obligations: Once you hand over the property to the bank, you are no longer responsible for mortgage payments, property taxes, or homeowners’ association fees. This can provide immediate financial relief.


  1. Loss of Equity: If you have equity in your home, giving it back to the bank means forfeiting that equity. The bank may sell the property at a lower price than its market value, leaving you without any proceeds.
  2. Potential Tax Implications: In some cases, the IRS may consider the cancellation of debt as taxable income. You may need to consult with a tax professional to understand the potential tax consequences of this option.
  3. Impact on Credit Score: While it may be less damaging than a full foreclosure, a deed in lieu of foreclosure will still negatively affect your credit score. It can make it challenging to secure credit in the future.
Credible Home Buyers in PA

Part 2: Selling the House As-Is for Cash to Reputable Home Buyers


  1. Preserving Equity: If you have equity in your home, selling it as-is for cash allows you to preserve at least a portion of that equity. Cash buyers often offer a fair price based on the property’s current condition, helping you retain some financial value.
  2. Avoiding Foreclosure: Selling your house for cash before foreclosure proceedings can halt the foreclosure process altogether, saving you from further legal complications and credit damage.
  3. Quick Resolution: Cash transactions typically close much faster than traditional real estate transactions. This can be crucial when you need to resolve your financial situation promptly.
  4. No Need for Costly Repairs: Cash buyers often purchase properties as-is, meaning you don’t have to invest time and money into repairing or renovating the home. This is especially advantageous if your property is in disrepair.


  1. Potential for Lower Sale Price: While you can preserve equity, selling as-is for cash may not fetch the same sale price as a fully renovated home on the open market. However, the speed and convenience may outweigh the lower sale price for many homeowners facing foreclosure.

When Giving the House to the Bank is a Good Idea:

When Selling As-Is for Cash is a Great Option:

  • Equity Preservation: If you have substantial equity in your home and want to retain as much value as possible, selling for cash is a wise decision.
  • Halt Foreclosure: If you’re looking to stop the foreclosure process and avoid further legal complications, selling for cash can provide a quick and effective solution. Selling for cash is also a way to avoid bankruptcy.
  • Speed and Convenience: When time is of the essence and you need a fast resolution to your financial distress, selling to cash buyers like 717 Home Buyers offers a streamlined and efficient process.

Is Selling For Cash A Good Option for You? 717 Home Buyers Can Help

When facing foreclosure in Pennsylvania, it’s essential to assess your financial situation, equity in the home, and personal priorities to determine the best course of action. Giving the house back to the bank via a deed in lieu of foreclosure can be suitable under certain circumstances, while selling the property as-is for cash to reputable home buyers like 717 Home Buyers offers a valuable alternative. Whatever your choice, seeking professional guidance and understanding your options is crucial to navigate this challenging situation successfully. Ultimately, your decision should align with your financial goals and the best interests of your family’s future.

At 717 Home Buyers, we get it. We know that life is typically unpredictable. Occasionally, we must forego the things we cherish in order to safeguard our future. We buy houses as-is, including those with mold, those in need of major repair, clean-up, and more. We can even move all of your unwanted furniture or items out for you. So, if you find yourself in need of selling your home due to foreclosure or other reasons, we can assist you.

Our knowledgeable experts are standing by to assist you in selling your home quickly for cash so that you can gain some breathing room, peace of mind, and the flexibility to find a great new job. You can learn more about how our process works by clicking here. You can read our Google reviews by clicking here or watch some videos of satisfied clients here. If you would like to talk more to one of our friendly professional experts, Call us at 717-639-2164 today. We can give you a no-obligation quote usually within 24 hours. If you accept the offer, we can close the sale and give you cash within just as little as one week. There are no fees, commissions, or closing costs. We hope the best for you. Let us know if you feel we can be of help.

About Josh Eberly

A native of Lancaster County, Josh’s roots run deep in his commitment to this community. He especially enjoys helping people find solutions through real estate. Josh is a seasoned investor with experience in many sides of buying and investing in real estate. Josh enjoys reading, listening to podcasts, digital marketing, and hanging out with his family. Learn more about where he’s been featured or 717HomeBuyers.

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