You are in a situation where you are already three months behind on your mortgage. Fortunately, no foreclosure lawsuits have taken place and you still have options. Your wife begins to wonder why you are always worried. She has not received the memo. The dream home that you and your family bought several years ago is turning out to be more than you can handle, especially with all the unexpected bills popping up from left to right. If you don’t do something soon, you and your family will find yourself in a very bad situation.
By looking at your situation, you can see that your property is in good condition, less normal wear and tear. You cannot sell without closing with at least $ 35,000.00 that you do not have at this time. The reason for this is a house at the end of the block in better condition that sold last month for $ 150,000.00. You owe $ 185,000.00 and no one is willing to pay that much for your property. You don’t like the idea of doing a short sale, as you have heard of the many horror stories that people go through during and after the process. Your credit is not as affected as it would after a foreclosure, but it is still affected. Also, there is still about a 35% chance that the bank will still come after you for the difference and that will not be any fun. To top it off, short sales success rates are around fifty percent among the industry.
Listing with a real estate agent and waiting for a buyer is pointless, as you cannot close on the difference and making a short sale is definitely out of the question. Here’s something you might not have thought of: Mortgage Assumption. Some people call it in different ways, such as Subject to Existing Mortgage or Mortgage Administration.
The Assumption of Mortgage involves transferring the deed of your property to another buyer in exchange for keeping the mortgage up to date and keeping the payments. In the housing market from 2013 to 2018, it is very difficult to get approved for a mortgage among US residents. This method of doing business opens doors to thousands of buyers who, due to various circumstances, cannot qualify for a mortgage.
Your best bet in this situation is to work with an experienced professional real estate buyer who can either take on the mortgage himself or find multiple stakeholders to do so. There are not many professionals who know how to legally structure this correctly and finding an agent who knows how to do it is like finding a needle in a haystack. Find a well-connected real estate investor who can help you move on with your life and preserve and maintain your good credit standing.
