Selling a house with a high mortgage balance can be scary. Although a house might sell for $100,000, when there’s a $90,000 mortgage balance, homeowners usually walk away with little/no money at closing… Sometimes it’s even necessary to come to closing with cash to sell a house.
Short sales are an option to consider for many people with high mortgage balances. Although they are long, drawn out processes, it may be preferable to bringing money to closing.
Things add up between 6% Realtor commissions, seller closing costs, crediting buyers’ closing costs, inspection fees, survey fees, and more.
What Exactly Is A Short Sale?
A short sale is when a lender (usually a bank) agrees to take less money than they are owed so a house can sell. For example:
What Should You Do?
Most Realtors in our experience are not knowledgeable enough to walk a homeowner through this process. Worse yet, most Realtors aren’t ware of alternative options to short sales.
Depending on the situation, many homeowners who otherwise owe too much, can still sell their house without bringing cash to closing. We have taken over payments in these scenarios many times. The idea is that if a house can rent out for enough money to cover to payments, this becomes realistic.
If you are considering selling your house by doing a short sale, please give us a call. We would love the opportunity to show you all your options.