When you owe more on your house than the current market value, it can leave you with a bad feeling… With the housing inventory being low many people have over paid just to be competitive. Then life happens and they can’t make the mortgage payment.. Unfortunately that is where a lot of recent homebuyers are finding themselves right now. The next step is usually taking out lines of credit , etc just to cover living expenses.
Don’t lose hope; you do have options if you take advantage of the time you have before the bank starts to foreclose due to non-payment. Now is the time to act if you foresee financial trouble ahead. Read on to discover how you can sell a middle TN house that is worth less than you owe.
Consider offering owner financing as a way to sell a house that is worth less than you owe; the benefit to the 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 for the contract duration. Another benefit of this situation, the buyers are responsible for caring for the property as if it were their own. With careful applicants and a savvy marketing campaign, you could find tenants willing to pay a higher than market value. However, your asking price is higher because you offer to hold the property off the market for the next two years. Because real estate can fluctuate significantly over this length of time, you may take a loss on the sale at the current price, 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; typically, the buyers are working towards saving for a large downpayment and getting their creditworthy ducks in a row. The main attraction of owner financing is that it allows the buyers to begin living a homeowner’s lifestyle now while they have time to improve their standing for mortgage approval. Additionally, extra monies are paid monthly on top of the rent payment, which will count towards a sizeable down payment at the end of the agreement, customarily for two years. In the worst-case scenario, should your buyers fail to fulfill their end of the deal, you still have your valuable real estate, and you keep any payments the buyers made towards the down.
Buyers typically seek ready to move into the property; for homes that need work, they will expect deep discounts for putting in work towards the downpayment. However, if you are experiencing cash shortfalls and your home is in a state of disrepair, owner financing may not be the correct answer for you. A better option may be a direct sale to a company like Provision Homes, LLC, which will purchase most homes as-is.
Provision Homes, LLC
Provision Homes, LLC is here to help. If you don’t have time to list, or you don’t want the hassle of a listing, or maybe you are fending off bill collectors and need to sell now, Provision Homes, LLC will make you a fair cash offer and provide you with a guaranteed closing date. We use clear-cut, simple contracts with no hidden fees. At Provision Homes, LLC, we don’t work on commissions, so you don’t have to worry about taking anything else off the top at closing. We cover all the normal closing costs too. When you sell directly to Provision Homes, LLC, the amount offered is the amount you’ll receive at the closing table. You could have your cash in hand in a matter of days. Set the closing for a day on the calendar that suits you best. Leave whatever you don’t want to keep behind.
At Provision Homes, LLC, we will address any concerns about selling directly to us. When you call there are no obligations whatsoever. Feel free to ask us any questions you may have. At Provision Homes, LLC, we understand this is an extremely stressful time, so we stop and take the time to listen to your needs. Working with the experienced local pros at Provision Homes makes the selling process easy. We’ll walk you through the process step by step. We got your back. Contact Provision Homes, LLC at (615) 310-1909.