Have you heard the term “upside down on your mortgage”? This is a situation where your house is worth less than you owe on it. If you’re in this type of situation, you may feel stuck. Fluctuations in the economy can cause real estate values to drop, which can have a negative effect on those with little to no equity. Often, homeowners find themselves in this situation when they have taken out lines of credit against the equity to cover living expenses.
Don’t lose hope; you have options, and even some bargaining power, especially if you take advantage of the time before the problem gets more severe. If you foresee financial troubles ahead, it may be time to sell the property, and there are ways of getting out from under your debt without money coming out of your pocket. Read on to discover how you can sell a house in Tucson that is worth less than you owe.
Consider offering owner financing as a way to sell a Tucson house that is worth less than you owe. The benefit to buyers is worth far more than you may realize. At the very least, their initial down and monthly payments should more than cover your mortgage. And the buyers are responsible for maintenance and repairs. With owner financing, you could find tenants willing to pay a higher than market value for the home. You’re able to go with a higher sale price because you offer to hold the property off the market for the next two years and offer the opportunity to buy to someone who otherwise couldn’t. However, because real estate can fluctuate significantly over the two years of your contract, by the time two years have passed, market prices may have risen again, so your asking price must include a calculated estimate of what the market could demand for the property in two years.
There are many reasons for this situation; usually, the buyers are working towards saving for a down payment and getting their creditworthy ducks in a row. The main appeal of owner financing is that it allows the buyers to begin living a homeowner’s lifestyle now while giving them time to improve their chances at qualifying for a mortgage. Additionally, the extra money can be paid monthly on top of the rent payment, which will count towards a down payment at the end of the agreement. In the worst-case scenario, should your buyers walk away from the deal, you still have your property, and you keep any payments the buyers made towards the down payment?
Buyers are typically looking for move-in-ready properties. For homes that need work, they will expect deep discounts for putting in the work it requires. So if you are experiencing cash shortfalls and your home is in a state of disrepair, owner financing may not be the best option for you.
Easy-Man Buys Houses
Another solution is selling directly for cash. Easy-Man Buys Houses may be able to help you get a cash offer if you need to sell a house in Tucson that is worth less than you owe. Now and moving forward, the direct buyers at Easy-Man Buys Houses are here to help. If you don’t have time to list and wait to sell, or you are fending off debt collectors and need to sell now, a direct buyer from Easy-Man Buys Houses will provide you with a guaranteed closing date. And Easy-Man Buys Houses uses clear-cut, simple contracts with no hidden fees. At Easy-Man Buys Houses, we don’t charge commissions, so you don’t have to worry about any costs coming out of pocket. When you sell directly to Easy-Man Buys Houses, we’ll take care of everything and help you get out of the situation you’re in. We can close in as little as two weeks or on whatever day suits you best.
At Easy-Man Buys Houses, we can answer any questions you may have about a direct sale, with absolutely no obligation. We understand this is an extremely stressful time, so we stop and take the time to listen to your needs. Working with experienced local pros like the direct buyers at Easy-Man Buys Houses makes the selling process easy; we’ll walk you through the process step by step. So that you’ll feel good about the deal long after closing, a direct buyer from Easy-Man Buys Houses will detail the costs and profits of listing on the traditional market vs. what you’ll see from a direct sale so that you can make the best decision for your circumstances. Contact Easy-Man Buys Houses at (520) 465-4662.