In general, the housing market has been increasing over the last decade, so homeowners typically have some equity invested inside their home. Equity is defined as the market value of house minus the debt you owe on it. However, due to different circumstances, some homeowners have negative equity, meaning that they owe more on the mortgage than what the house is worth. Sometimes this is due to homeowners bought the property at the peak of the market and suffered from declining economy. Other times negative equity is caused by homeowner taking out loans and lines of credit against the equity to pay for emergency expenses that pops up in their life.
It doesn’t have to be gloomy and doom for these situations. As the matter of fact, the earlier you realize the severity of the problems and take actions, the better chance you have to resolve it. Don’t wait until the last minute to tell the mortgage company that you cannot afford it anymore, at which point they have no choices but to foreclosure your property. Read on to discover how you can sell a house in Augusta that is worth less than you owe.
Lease Option/Rent to Own
Consider offering lease option (a.k.a rent to own) as a way to sell a house in Augusta that is worth less than you owe. A lease option is a way to sell your house in Augusta to a buyer in the future, but that buyer remains a tenant for the duration of the term. For example, you can have a lease option agreement put together with a buyer such that the buyer give you a down payment for $5,000, renting your house with the option to exclusively buy it within a certain period, let’s say two years. You cannot sell your Augusta house to any buyers other than the one in the agreement. If the buyer doesn’t buy the house within two years, they lost their down payment. The buyer can move in as soon as possible and paying you rent as a tenant until they close on the house. The benefit to the buyers is worth far more than you may realize. Many people want to be homeowners, yet they don’t have the resource at the time to do so. Buying with a lease option allows the buyers to feel as if they own the home now, even if they don’t have the fund to close yet. AS the result, buyers often pay a much higher than market value price for your house; thus allowing you to sell your Augusta house that is worth less than you owe. 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 the buyer’s down payment.
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 HBI Home Solutions, which will purchase most homes as-is.
Let house buying company takes over the mortgage
Letting a professional house buying company takes over the mortgage is another option to sell the Augusta house that you owe more than its worth. Not many house buyers have the ability to give you this offer, but HBI Home Solutions absolutely can. The process is fairly straight forward. You allow the buyer to take over the mortgage and make payment on your behalf, and the buyer will give you a negotiable amount of money at closing as a walk away net to you. You not only receive some cash at closing, but also move on from the property that is holding you back. Since the buyer continues to keep the existing mortgage in place, they don’t have to apply for a new loan to buy your property. This saves the buyer a lot of unnecessary cost that otherwise they would have to pay the bank. The buyer will then be able to pass all of that savings onto you, allowing you to sell the house at the price that regular buyers would not dare to pay.
The whole process can be as fast as 7 days. This option is especially helpful if you’re behind on your payments and are facing foreclosure. The right buyer, like HBI Home Solutions, can immediately jump in, pay the past due balance to bring your mortgage back to current, and give you the ability to walk away from the house without any financial consequence to your credit.
HBI Home Solutions
HBI Home Solutions may be able to help you get a cash offer if you need to sell a house in Augusta that is worth less than you owe. Now and moving forward, the direct buyers at HBI Home Solutions are here to help. If you don’t have time to list and wait to sell, or you are fending off bill collectors and need to sell now, a direct buyer from HBI Home Solutions will provide you with a guaranteed closing date. And HBI Home Solutions uses clear-cut, simple contracts with no hidden fees. At HBI Home Solutions, our direct buyers don’t work on commissions, so you don’t have to worry about taking anything else off the top at closing. When you sell directly to HBI Home Solutions, the amount offered is the amount you’ll receive at the closing table, and you could have your cash in hand in a matter of days. If you’re not quite that ready because a direct buyer from HBI Home Solutions isn’t planning on moving into the property, we can be flexible and set the closing for any day on the calendar that suits you best.
At HBI Home Solutions, we can address your concerns about selling directly with absolutely no obligation; feel free to ask us any questions you may have. At HBI Home Solutions, we understand this is an extremely stressful time, so we stop and take the time to listen to your needs. Working with experienced local pros like the direct buyers at HBI Home Solutions makes the selling process easy; we’ll walk you step by step through the process. So that you’ll feel good about the deal long after closing, a direct buyer from HBI Home Solutions will detail the costs and profits of listing on the traditional market vs. what you’ll see from a direct sale so that you can make the best decision for your circumstances. Contact HBI Home Solutions at (706) 389-5419.