Not Enough Equity
Selling your home is possible even if you don’t have enough equity!
Homeowners often have a lot of equity in their homes. This means that they can borrow against it or use it as collateral for loans. Many homeowners face the issue of not being able to sell their homes with this equity. There are many reasons why, but the most common is that they owe more than the home’s value on their mortgage loan and don’t want to take on more debt by paying off the difference between what they own and what they owe.
For many homeowners who sell their properties, closing their home sale is a thrilling experience. Nevertheless, home sellers can finish up paying to close the deal. As a matter of fact, situations like this occur much more frequently than many could imagine.
How it Works
Home equity is the value that a house has in relation to what its owner owes to it. The difference between a home equity loan and other types of loans is that your house becomes the collateral for the loan. You don’t have to worry about paying it back because the lender can foreclose on your property if you default on the payments.
In other words, if someone owns a $300,000 home and they have an outstanding mortgage of $150,000, then they have an equity of $150,000. Moreover, homeowners trying to sell their homes often run into issues for this very reason: they cannot sell their property without first obtaining approval from their lender. Before doing so, they need to get rid of any outstanding loans against their property.
Subsequently, there are many reasons why this equity might not be enough for someone to sell their home without incurring substantial financial penalties such as high interest rates or even bad credit scores. In addition, despite changes in homeowner’s lives, annual taxes on a property will keep coming, leading to a serious drain on their finances.
Selling a Home Without Much Equity
When homeowners understand their financial choices, usually they might consider selling their houses, yet subjected to an ongoing mortgage transaction. A great reason to follow through with this option is that property sold off the seller’s hand could be done quickly and effectively.
One of the most common solutions to this issue is hiring a professional intermediary to assist them in the property sale process. A realtor is typically the primary point of contact for homeowners. On the other hand, the biggest challenge for going after this option is the excessive amount of time and associated fees. The reduced sales prices incorporated with the cost of paying off the loan are bothersome. Several agents will request between five or six percent in fees and commissions.
The Fastest and Simplest Way To Sell Your Home
When homeowners decide to sell their homes, the traditional way can intensely change their income because it can take away their profit. With that being said, at Flip CC, we offer a much faster and simpler way to get rid of this issue.
We have the required experience to help homeowners going through this situation since we offer cash offers for their property without making repairs, and there are no fees, commissions, or closing costs.
It does not matter how much you owe on your house, we're able to buy homes with any type of condition like foreclosure, probate, divorce situation. Since we buy properties with cash on hand, you don’t have to rely on traditional bank financing. Don’t wait to contact us, we're ready to make you an offer!