Equity is a driving force in building wealth, and selling your house with no equity, can be disheartening and sometimes leaves sellers owing money at the closing table. In the last year, we have seen a lot of appreciation in the real estate market in Kansas City , but we have also seen a lot of overpayment for properties.
When buyers opt to pay more than the market value for a property, this puts them in a little or no equity situation from day 1. Read on as we explore selling a house with no equity in Kansas City .
Talk To Your Lender
If you get behind on your payments and think you might need to sell, always make the first call to your lender, especially if you want to stay in your house. The lender may have some options available to help you get caught up. Here are some things you should ask them:
Can we negotiate a loan modification? Discuss the possibility of modifying your existing loan terms to make it more affordable or to reduce the amount owed. This could involve extending the loan term, reducing the interest rate, or even forgiving a portion of the principal balance. Inquire about any loan modification programs or guidelines your lender offers.
Are there any assistance programs available? Ask your lender if they have any assistance programs or resources specifically designed to help homeowners who are struggling to sell their homes due to a lack of equity. Some lenders may have special programs in place to support borrowers in these situations.
Can we explore a deed in lieu of foreclosure? Inquire about the possibility of pursuing a deed in lieu of foreclosure, where you voluntarily transfer ownership of the property to the lender to avoid the foreclosure process. This option allows you to release yourself from the mortgage obligation, but it may have certain implications, so it’s important to understand the potential consequences.
Short Sale
The hot real estate market in Kansas City is sure to turn up some short sales. Many buyers, made offers and purchases without inspections out of desperation to get an offer accepted. Unfortunately, the inevitable will happen and some of those buyers will be faced with some kind of major repair bill. If this happens, you may attain the approval of your lender to sell for less than the amount still owed on the mortgage.
Short sales allow homeowners to sell a house with no equity in Kansas City , but generally are only approved in cases where you can prove that there are a lot of costly repairs that need to be made which impacts the value of the property. In this real estate transaction, you’ll be doing a great deal of leg work to get offers approved, as the lender agrees to accept less than you owe for the mortgage, avoiding foreclosure. Expect your credit score to lower for the short sale, but not as low as a foreclosure would take it, and the information will appear for seven years. As for attaining a new mortgage, you may need to wait for one to four years. This is still much better than a foreclosure, where the consequences are more severe. Cash home buyers like Angel and Jeramie at Mastiff Home Buyers are dedicated investors in the community who want to help people in Kansas City sell their houses for the most profit in the way that is most beneficial to personal and financial circumstances. At Mastiff Home Buyers , we will advise you of what they believe is the best way to sell your house with no equity, no matter how you decide to sell.
Owner Financing
One way to sell a house with no equity in Kansas City is by finding a buyer with whom your can offer use of the property in return for payments. These buyers who want to live in the property, typically don’t qualify for conventional loans and need time to get their finances together. There are many benefits to selling through owner financing if you’re willing to take on the risks of working with these buyers. You can make a quick sale and earn an income stream from the property, while the buyer is responsible for the property, which reverts to you should they walk. Cash home buyers like those at Mastiff Home Buyers can help you by absorbing some of that risk. Instead of receiving payments from an owner occupant, you can take payments from us and we can manage the tenant or buyer, releasing you from that responsibility.
Direct Sale
The best way to sell a house with no equity in Kansas City is by making a direct sale with a guaranteed closing within just days; ask us about a flexible date. You can avoid the hassles of a short sale or foreclosure altogether. Furthermore, you won’t need to worry about spending a penny out of pocket to prep or make repairs by selling directly to a professional buyer like those at Mastiff Home Buyers . In addition, you can skip the entire showing process with a direct sale because we buy houses in as-is condition at Mastiff Home Buyers , and our professional buyers pay cash for houses with no equity making the process fast and easy. Finally, we’ll compare our offer to all your options so you can make an educated decision because the professional buyers at Mastiff Home Buyers want you to feel good about working with us long after closing. You won’t pay commissions, and there are no hidden fees; our offer is the amount paid at closing because of our full-service in-house team of industry specialists. Your best option to sell a house with no equity in Kansas City is a direct sale to a professional buyer at Mastiff Home Buyers . Call Mastiff Home Buyers at (816) 535-0076 .