You’re in a situation where you’re already three months late on your mortgage. Fortunately, no foreclosure lawsuits have taken place and you still have options. Your wife is starting to wonder why you’re always worried. She hasn’t received the memo. The dream house that you and your family purchased several years ago is turning out to be more than you can handle, especially with all of the unexpected bills popping up left and right. If you don’t do something soon, you’ll find yourself and your family in a very bad situation.
Looking at your situation, you can see that your property is in good shape less normal wear and tear. You can’t sell without having to come to closing with at least $35,000.00 which you don’t have right now. The reason for this is a house down the block in better condition 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’ve heard of the many horror stories that people go through during and after the process. Your credit does not get affected as much as it would after a foreclosure but it still takes a hit. In addition, there is still about a 35% chance that the bank may still come after you for the difference and that won’t be any fun. To top it all off the success rates of Short Sales are about fifty percent among the industry.
Listing with a Realtor and waiting for a buyer is pointless as you can’t come to closing with the difference and doing a Short Sale is definitely out of the question. Here is something that you might not have thought of: Mortgage Assumption. Some people call it different things such as Subject To the existing mortgage or Mortgage Management.
Mortgage Assumption involves transferring the deed of your property to another buyer in exchange for their bringing the mortgage current and maintaining payments. In the Real Estate market of 2013 – 2018, it’s very hard to get approved for a mortgage among American locals. This method of doing business opens the doors to thousands of buyers who, due to various circumstances, can’t qualify for a mortgage.
Your best bet in this situation is to work with a seasoned professional Real Estate buyer who can either assume the mortgage himself or find several interested parties 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 this is like finding a needle in a haystack. Find a well connected Real Estate investor who can assist you and allow you to move on with your life and preserve and maintain your good credit standing.