There’s no legal reason you can’t sell your home while in forbearance — however, the details of your situation will dictate whether it’s a good idea. Any proceeds from the sale will have to not only go toward repaying the mortgage payments you skipped during forbearance, but also toward paying off the mortgage in full.
If you have a decent amount of equity, you may be able to sell the house, pay your debts and still walk away with some money in your pocket. However, if you have low, no or negative equity, it may not make sense to sell. If the sale price won’t cover what you owe, and you’ll still owe a significant amount, you may want to hold off.