Each month, I talk with multiple home sellers that have found it difficult to sell their house in the current market.
Some areas of the country are experiencing a return to normal levels of inventory. But in Richmond Virginia where I am based, sellers encounter some of the following situations (From the Times Dispatch, Sept 5, 20130)
- Headline: 1 in 5 mortgages are seriously underwater (Times Dispatch, Sept 5, 2013)
- 19 percent of residential homeowners with mortgages in the Richmond area owe 25 percent or more on their mortgages than their houses are worth.
- 23 percent of homeowners with mortgages, are on track to resurface with enough equity to be able sell their houses in the next 15 months
- In the Richmond area, 13 percent of all homeowners with mortgages have at least 50% equity.
Those statistics suggest that nearly 40% of Richmond area homeowners are unable to sell their house via traditional means.
As a creative real estate investor, I can help you figure out how to potentially sell your home, if you are one of those sellers who has little equity.
How you can sell your house with no equity
I might be able to place a future homeowner with slightly damaged credit into your house today who should be able to get a mortgage within 12-18 months.
You will have someone paying you a monthly lease payment so that you do not have find the money to cover your mortgage on an empty house.
You will have a future homeowner caring for your property so that you don’t have to fix the leaky toilet.
You will have all the benefits of taking your mortgage interest deductions and real estate tax deductions.
Of course, that is the perfect scenario.
There are a few risks that you must know about in this scenario:
- Your house may not appraise for the price you have agreed to sell at.
- Your tenant buyer may not qualify for a mortgage in time.
- Your tenant buyer may get a job transfer and need to move to another city.
- You may not get your lease payment.
Those risks are real when it comes to leasing a house with the option to buy. But it is a risk that you might get comfortable with.
How can I help?
If I can help you in this scenario, simply pick up the phone and give me a call. I try to answer my own phone, at 804-719-1489.
I’ll tell you if I can help you or not.
The initial consultation on how to sell your house with little to no equity is free and you might learn a thing or two.
Other options for Zero Equity or Underwater Homes
If you are truly upside down in your mortgage, a short sale may be the only way to go.
Other investors may do an option for a 10 year period, but I will not. It is not always a good solution to bank on a future escalation of market prices. I can help you with your short sale.