You are not alone in this situation.
Many home owners find themselves under water these days. Mostly due to no fault of their own.
You have some options:
1. Loan Modification
2. Short Sale
If you are able to secure short sale approval form your lender, you will not have to pay the Realtor out of pocket. The commissions are negociated in the approved short sale list price. The bank will pay commissions based on the net proceeds from the short sale.
If Wish You The Very Best Luck!!!!!
Kawain Payne, Realtor
Call me at 502-254-9600. I can help.
Just closed one a few days back,It is process and I would need to discuss this in detail with you
Sue Moody HRC
Realtor/Broker IN /Ky
1. Pay the difference at closing. If you go this route, see cost reduction possibilities below.
2. Try to get the bank to accept a short sale. If you go this route, your credit will take a beating, but the commissions will come out of the bank's proceeds not your pocket. Be sure your agent knows how to navigate the insane world of short sales. They take forever with no guarantee that the bank will approve it, and they require a TON of hassle. But it could keep you from having to write a check for thousands of dollars at closing.
Here are a few thoughts to help you evaluate the cost-benefit analysis with regard to agent/agency involvement...
1. For Sale By Owner - PROs: no commissions (unless you choose to allow agents to bring you a buyer and pay them a finder's fee). CONs: usually FSBO's typically sell for less (buyer is trying to get a discount because the seller isn't paying commissions).
2. List with a company that does flat fee listings - PROs: Cost is fixed, you know it going in. Gives you MLS exposure for a flat fee. Often less expensive than a % based commission. CONs: usually fee is paid at listing so could be an expense with no sale. Some of these type listings are limited service meaning you still handle your own showings, negotiations, or other parts of the process a full service listing would provide.
3. Negotiate the commission on a full-service listing to something you can afford to do - PROs: MLS exposure. professional marketing and negotiation. because there are no standards regarding commission charges and fees you can negotiate these with your broker. CONs: Some offices do not negotiate their rates - but that is company/office specific. May be harder to find an office that is willing to negotiate rates/services.
4. List with a short sale specialist. They negotiate the commission with you technically but practically it gets negotiated with the bank as well. PROs: they know how to handle a short sale listing and bear most of the hassle burden for you. CONs: doing a short sale destroys your credit and usually takes forever.
Feel free to call with more questions or if you need help with any of these options.
E3 Realty LLC
The housing market is now showing signs of recovery. Some homeowner has been able to negotiate their loans with their banks for a more favorable mortgage payment. This is something you should try first. If you do not have to sell, you might consider waiting to see how the market recovers in your area.
Keller Williams Realty
I'm assuming you have to move? The market is improving however, you could be talking another couple years in the condo market here - it's typically slower than a single family home. Does your association allow for rentals - possibly you could rent it for a year or two? Selling it yourself is also an option - you are going to have to work hard to gain visibility though - advertise on line - even open house - you are limitied in what you can do since sinage rarely helps in a condo and you have no way of posting to the large web sites such a REALTOR.com. It could be a long process for you that could cost you money in the end as well. Have you even spoke with a realtor yet to get a professional opinion of what you might expect? If not, I would, you may be surprised!
Do you think that you are qualified to do the job of a Realtor? Go for it.
Why do you not consider holding on to it, now that the Market is going up?
So far; you haven't lost a penny!