Once a lender files, the timeline moves out of your control, and any equity above what you owe becomes far harder to protect. Selling on your own terms while you still hold title lets you set the price, choose the closing date and keep whatever equity remains after your mortgage and closing costs.
Your lawyer needs to know about the arrears immediately, since your mortgage payoff, including any accrued interest and fees, has to be confirmed with your lender before a sale can close. Seller closing costs still run 4 to 6 percent of the price on top of that payoff figure.
Speed and privacy both favour acting before a lender does. Get your hand-reviewed valuation from Joel Dyck.