Sell My House Underwater on Home Mortgage Loan Dallas-Fort Worth
How to Sell My Home With No Equity - Underwater Mortgage Relief
If you're underwater on your home mortgage loan, and wondering "How to Sell an Underwater House" in Dallas-Fort Worth, Texas, we can help.
Many sellers ask:
"What if I owe more than my house is worth?" You do have options.
We're experts when it comes to how to get out of a house that is underwater, and have helped many local home owners through similar situations.
How to Get Out of a House That Is Underwater
If you want to sell a Dallas-Fort Worth house that is underwater on its home mortgage, we can help.
There are a million and one ways you could have ended up in this situation:
- Maybe you have an Adjustable Rate Mortgage or huge balloon payment that got you behind.
- Maybe you bought your property at the market's peak back in 2005 - 2006, and it still hasn't recovered its value.
- Maybe you had a high LTV or a very small ($0?) down payment, and have had trouble keeping up with interest, much less paying down principal.
- Maybe your house has required unforeseen & costly repairs that have reduced its value or forced you behind on the mortgage.
Regardless of how you arrived in this situation, the result is the same:
You're upside down on the mortgage, and you're wondering how to get out of a house that is underwater.
Don't worry, you're not alone!
One of the most common scenarios we encounter as local real estate investors are homeowners that want to sell, but feel trapped because they owe more than the house is worth.
The good news is you have options. However, there is some:
Some Bad News If You Want to Walk Away From an Underwater Mortgage and Sell...
While sometimes you might avoid it:
If you owe more than the house is worth...
Especially if you're also behind on payments or have other mortgage / credit issues...
To get out of a house that is underwater,
You might have to walk away without any extra cash in your pocket!
Bad news indeed! We've seen it happen, and know it can be frustrating (to say the least).
On the other hand, when you feel so trapped by the underwater house, we've also seen sellers walk away totally relieved just to be out of that situation!
And look on the bright side:
Even if you have to sell your Dallas-Fort Worth house through a strategic short sale, and walk away without a dollar from the sale...
... That's still about 100x better than a foreclosure on your credit report for the next 7 years (and all the costs & headaches that entails)!
It will be impossible to know whether you'll be able to walk away with any cash in your pocket or not, until you've thoroughly explored your options.
If you just want to skip the research & get our input, click the button below to request our no-obligation cash offer.
Know Your Options: Sell via Strategic Short Sale, or Refinance Your Underwater Mortgage Loan?
If your mortgage is upside down, and you owe more than your home is worth, getting out of this situation is going to be a pain.
Unless you have the cash to pay the bank the difference, you're going to need to make a tough choice:
- Keep paying down the loan until you owe less than the house is worth (potentially refinancing for more favorable terms),
- Or negotiate with the bank on a strategic short sale (selling the house for less than the outstanding balance on your mortgage).
Depending on your situation, we can either help you sell the house without paying out of pocket on outstanding debts ...
Or at the minimum, we can help to close the sale and significantly reduce what you'll need to pay out of pocket to do so.
We work with local title companies and mortgage experts who will fight the bank on your behalf, in order to:
- get you a better deal on a refinance,
- or to restructure your debts owed to allow a fast sale of the property.
Keep in mind: in most cases, the last thing the bank wants to do is foreclose on the home.
It is a long, complicated, and costly process for them ... and it doesn't win them any friends in the neighborhood.
However, they also have those loans to recover, so of course, they are looking for a solution that is mutually beneficial to themselves, and to you, the homeowner.
Selling Your Upside Down Mortgage Dallas-Fort Worth Home
There are several options for those who are facing an "upside down mortgage" on their Dallas-Fort Worth house.
Suffice it to say - no matter how you slice it - this is a complicated situation.
That's why the first and most important step, before making any decisions, is to know your options.
To do so, we've put together a number of related resources on this site to help you learn a bit more. To start with, we recommend you read some or all of the following pages:
- Stop Foreclosure... Before It's Too Late!
- Sell a Dallas-Fort Worth Home Behind on Its Payments
- Benefits of a Cash Sale to the DFWBuyer
After you've had a chance to look around those pages, if:
- you still have questions,
- or you simply want to speak to us directly
- or you want to hear our no-nonsense opinion on your options,
feel free to contact us directly.
Or, if you are just ready to be over the situation once and for all, please fill out the form to request a cash offer on your Dallas-Fort Worth home immediately.
Home equity is the amount of money you (the owner) have after subtracting the unpaid balance on your house from the current market value (estimated by a valuator).
Equity rises as the loan is paid off and as the home appreciates in value.
Despite a lack of equity in your home, you still have options to sell:
• Selling with a realtor
Selling with a realtor can be difficult in this situation.
Having little to no equity in your home is not attractive to a realtor; they would rather list with someone who has their head above water -- it is easier for them.
Also, the decreased sales price, the cost of paying off your loan, and the fees associated with using a realtor (6% commission!) can be pricey.
• Short sale
A short sale is a sale that generates proceeds that are less than the amount owed on the property.
This occurs when a lender and borrower decide that selling a piece of property, realizing a moderate loss.
If you do not want to absorb a loss, there are more options...
• Selling FSBO (For Sale By Owner)
Listing your property by yourself is a hassle.
Often the only upside to this is avoiding all of the fees associated with using a realtor -- the traditional practice when selling.
For more on how to list 'For Sale By Owner', visit our page on FSBO.
You can sell a Dallas-Fort Worth house with no equity to accredited investors, like ourselves, as a feasible route to take.
You probably need to get above water quickly.
When you sell to an investor, you can close a deal in as little as 5 days.
Also, the house is bought in 'as-is' condition so there is no need to make any repairs or updates to the property.
In addition to these perks, you will receive CASH for your house.
There is no need to worry about any financing options; this method is very simple.
The truth is: this is a personal decision.
You should run the numbers and weigh your options before pulling any triggers.
This way you will be able to see which one makes the most sense, thereby laying out a blueprint for your next steps.
We recommend these two options:
- selling to an investor for cash
- short selling
These are both common choices that often work out for people in your same situation.
At The End Of The Day
Selling a home can be a long, complicated affair.
This process can become even more difficult if you owe more on the current mortgage than what the home is currently worth.
Lack of equity in a home can be a huge disadvantage an owner can have during the process of selling a home.
If you want to sell Dallas-Fort Worth real estate without equity, it may be subject to lengthy delays in the sales process and you can become overwhelmed with the situation.
The fear of foreclosure is just one of the many obstacles a homeowner can encounter under this circumstance.
We hope that you have learned enough from this page to avoid a dreaded foreclosure.
In any event, filling out our no-obligation cash offer form is a quick and easy way to get an idea of where to start the process, if you're thinking 'I want to sell my Dallas-Fort Worth home when underwater' on your current mortgage.