I'm sorry to hear that you feel trapped in your home. There are many people that feel the same way you do. There are ways to take advantage of some of the government's latest programs and the pressure they're putting on banks to work with troubled borrowers.
Yes, you can sell it on your own (For Sale By Owner) if you'll break even. If you won't break even and don't have money to make up the difference, you can try to do a short-sale.
If you have questions regarding how to go about doing a short-sale, check out my blog post entitled, "A Seller's Guide to the Short-Sale Process" (link below) and/or contact me.
Danilo "D" Bogdanovic
Please contact me, I know an investment group that could help depending upon the situation. This is not a joke, I have seen them help folks in your situation. Contact me through my website if interested.
If you haven't already sold your home, I recommend you check out the site below for a FREE video on "How to Get and Instant Home Sale". Also, you should click on the box that says "Get Cash For Your Home Now" and fill out the Creative Homeowner Solution Request form.
Best of Luck,
Using the same example, some investors would consider acquiring your property "Subject To," then renting it out or finding a tenant-buyer for a lease option. For example, suppose your mortgage is $1,200 a month and fair market rents in the area are $1,600. An investor would have you sign over the deed, with the mortgage remaining in your name. The investor would find a renter for $1,600 (or a tenant-buyer for maybe $1,800). Then every month the investor would pay your $1,200 mortgage and pocket the difference. At some point in the future, the investor would sell the property, removing you from the mortgage. The key here is that the rental rate must be higher than your monthly PITI.
Other than that (and a few more esoteric techniques), your options really come down to requesting a loan modification from the lender, trying a short sale, or foreclosure.
Hope that helps.
I am truly sorry to hear of your situation. You do have several options that you may/may not be aware of. You can send me an email or call. My partner and I have helped many families in your circumstance, sell and/or keep their homes. If we are unable to help, we will refer you to someone in our large database of professionals nationwide.
The Real Estate Cafe
I do not know your personal situation, however did you consider Refinancing or Modification?
The LTV was increased to 125% on July 1, 2009 for Refinancing.
You might be eligible for Loan Modification, as well.
There is FREE, HUD-approved counselling available. Visit my blog for details:
I see that some have mentioned the Short Sale option...it is increasingly becoming a viable option as banks have started to realize it is cheaper then a foreclosure. However...you have to qualify for one. There are three basic qualifications that you must meet for banks to accept less than what is owed - Financial Hardship, a Monthly Shortage, and Insolvency. These are key to getting a short sale done successfully.
There are many agents who can handle a short sale...and there are many who think they can and mess it up. Make sure that you consult with a Realtor, consult with a Housing Counselor (they are free), and consult with an attorney. Our team offers free legal counsel from the attorneys that handle our short sales and professionally negotiate our short sales. We can help, and so can other agents in the area. Compare what agents do to handle short sales and find the ones that best fit what you need. Anyone charging you anything for a short sale is not worth the time. There are no fees that the seller is responsible for in a short sale. Also, you can not profit from a short sale - so anyone telling you that you will get money in this transaction is lying to you.
At the end of the day, please do not give up - you have taken the first step to solving the problem and there are people out there that will help you. Don't push off the problem with band aid solutions.
Many others are feeling just like you right now. Unfortunately in order to answer your question to the best of my ability I would need to ask you a few questions. For example, do you owe more than you could sell your house for? If so, perhaps a Short Sale could be an option for you. However, you would not break even, as you would walk with no money at all. Another question needing to be answered would be whether or not you are late on your mortgage payments and why you no longer want your home. I am working with several investors who have hundreds of thousands of dollars in cash to invest in real estate with, but I would need to know the condition of the property, price you are looking for, etc. There is also something called deed in lieu of foreclosure which is another option, albeit not great on the credit report, that we could talk about.... Alternatively, if your house is worth more than you owe, you could also list your home as a FSBO (for sale by owner). But keep in mind, that most FSBOs do end up listing with a realtor simply because we are experts and we know how to list and sell properties.
I am sorry that I can not fully answer your question on this message. However, feel free to call or email me and I would be happy to help you. And best of luck with whatever you decide to do.
Janice Copeland, REALTOR
If you would like to do a short sale, I would be happy to speak with you about it and see if it looks like the math will work out. If you want me to hook you up with an investor, I can do so, but please contact me privately.