In addition to the suggestions below, consider asking the buyer to get a co-signer such as a parent, on the loan.
If the house is in an area where lots of homes have been selling for 30,000 - 60,000 and you are trying to sell your house for $89,900 but it only appraises for $60,000 then that is the max that any bank will finance it for.
Some Areas in Birmingham like Huffman, Centerpoint, and Eastlake have a lot of foreclosures on the market and this causes prices to go down because of the competition.
I am very skilled in Creative Financing and you have several options available to help you sell the house. Seller financing will immediently increase the number of people that are interested in buying your property. I normally get 30+ calls wanting to buy my seller financed homes.
Here is what I would do
1. Seller finance the property and put a 5 year balloon in the note. This means that the buyer has to payoff
the mortgage in 5 years. After you receive 12 months of payments you can sell this note off to a note investor.
I have my mortgage broker qualify my buyers and he will tell me who he can get financed quickly and who to avoid. I pick the best qualified buyer and then put them into credit rehab to get their credit cleaned up.
2. Rent to Own the property for 3 years
3. Rent out property until market turns around (my last option)
If you occupy the property and you are in default on the loan then the banks will do a short sale on the property. You don't want to have to do a short sale because it will affect your credit score. A short sale is better than a foreclosure but it is not preferable if other options work.
If you go to our website you can put your info in and we will give you a call. Once we know the details we can tell you what the best options are.
Hope this helps
Good Luck to you and hope you get your home sold.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
If you are not interested in owner held financing then your best bet is to rent the purchaser your home until which time they can qualify for a mortgage or assist them in finding the most lenient financing programs available.