I'm occasionally called by homeowners who have encountered financial issues which have made them miss mortgage payments and they want to know if it's possible to sell their house. Unfortunately, things happen and people miss mortgage payments but it is possible to sell your house and get out from under the burden of payments that you can no longer afford. If you're behind on your mortgage and are considering selling your home to avoid foreclosure, there are several options depending on your situation.
If you have equity in your home, meaning the house is worth more than what you owe, then you may not have any issues depending on what other bills you may be behind on. You'll want to call the bank, explain your situation and ask them for a payoff which includes any late fees and attorneys fees. Also, keep in mind that any fees owed to HOA, CDD, or property taxes will also be owed at closing. Once you know all of these figures then you'll be able to compare that to the value of the home to find out if there's any remaining equity.
If you do not have equity in the home or you have very little equity then you'll probably need to do a "short sale". A short sale basically means that the bank is being shorted on their funds. This can be a lengthy process and most lenders will require that the property is listed with a Realtor in an attempt to get fair market value for the home. If you are behind on your HOA dues then these will also need to be negotiated during the short sale. The short sale process can be lengthy but the outcome is typically much better than a foreclosure with regards to your credit.
It is also important to note that your HOA, your lender, and the tax collector, all have the right to foreclosure on your house. Don't assume that if you're making your mortgage payments but not making your HOA payments that you'll avoid foreclosure.