How to Sell My House Quickly With No Equity
The equity in your home is the difference between what you owe your mortgage company, and the value of your property. Owners with equity can typically sell their home and walk away with a profit. But oftentimes home prices diminish, and borrowers find themselves with little to no equity. While it's harder to sell a home with no equity, there are techniques to get your home sold.
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Instructions
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Steer clear of real estate agents. Real estate agents will work to sell your home fast -- however, they charge a six percent commission that is difficult to pay with no equity in your home. Do a for sale by owner (FSBO) and sell your home yourself. Get a home appraisal to learn the actual value of your home, place signs to market the property, and contact a title company to help you with the paperwork.
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Price the home to break even. You can try to sell the home for more than it's worth. But if you are looking for a quick sale, contact your mortgage company to inquire about your payoff balance, and then set the sale price accordingly to break even.
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See if you qualify for a short sale. Mortgage short sales, which let you sell the home for less than you owe, benefit owners with no equity and those who owe more than the home's worth.
Lenders must approve short sales, and owners must meet the criteria. Experiencing financial hardships can qualify you for a mortgage short sale. Lenders will ask you to verify hardships by providing a list of your income and expenses, along with a hardship letter.
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Tips & Warnings
Title companies prepare the title for real estate properties, research the title, insure the title and conduct the closing on mortgage loans. Title companies help owners because they can function as the escrow agent and closing agent, providing assistance with the selling process.
Escrow agents handle the money and documents in a real estate transaction.
Mortgage closing is the final step in the homebuying process, where sellers relinquish rights to their home, and buyers sign the new loan documents.
