7 Thoughts on i want to sell my home in michigan but know i wont get what i owe so whats my next move?
  1. Reply
    March 7, 2014 at 2:55 pm

    rent the house out !

  2. Reply
    Rick B
    March 7, 2014 at 3:21 pm

    You can call your lendor and explain the real estate picture in your area and ask them if they will accept a short sale as payment in full. This normally only works if you are really behind in payments and it looks like they are facing a foreclosure. They’d rather get some moeny out of it and not deal with the headache.

    If you do get them to agree, get it in writing and make sure it states “payment in full” and/or “without recourse”.

  3. Reply
    March 7, 2014 at 3:44 pm

    Do you have at least 30% equity in the home? If you do you have more options then you may realize. How far are you behind in payments? You can do a short sale if the lender allows which was already stated. How do you know you would’nt get what you owe? That tells me two things, no confidence and that you may be upside down.

  4. Reply
    Etta P
    March 7, 2014 at 4:30 pm

    Well, I see that you really only have limited choices, rent it or bring in the difference into closing.
    Or I guess you could just stay in it.

  5. Reply
    March 7, 2014 at 5:25 pm

    If you owe $ 100,000 and you sell it for $ 75,000 you can:

    Pay the difference to the mortgage holder yourself

    Try to do a short sale

    Rent it and hold onto the property for a few more years until the values go up again

    Ask the bank if you can do a deed in lieu of foreclosure, where you voluntarily give the house back to the bank so they don’t foreclose.

    Stop making payments altogether and the bank will foreclose and take back the property.

    Those are all the options I can think of. Selling or renting are the only options that won’t really hurt your credit and make it hard for you to buy another house for several years.

  6. Reply
    March 7, 2014 at 5:43 pm

    We tried to sell our house from Jan to July this year and we couldnt get an offer big enough to pay off what we owed plus realtor commissions sooooo we are staying put in our house, refinancing for reduced payments, no PMI, & a little extra money to improve the house. You might as well enjoy your house if you are “stuck” there as it sounds like you are. Also, you could keep it on the market at the price you need to break even and wait and wait and wait to see if you get lucky. While you are waiting, make inexpensive improvements on the home that are time consuming, but inexpensive to make your house look its best. DO NOT just let the house forclose, I think that is just sick of people to do without EXTREME circumstances. The bank will help you work out financial hardship issues the best they can!

  7. Reply
    Christopher B
    March 7, 2014 at 5:56 pm

    You have options. You can stay in your home and ride out the market. You can sell your home and pay out of pocket whatever debt you didn’t cover from the sale. You can rent the house, hopefully for more than your mortgage/insurance/taxes/property manager, otherwise you will come out of pocket for the remaining each month. You can sell it via non-standard means – such as with owner financing. This means you carry the mortgage, and someone else leases-to-own you house. You get better rents, and better tenants since ultimately they want to own the house.
    You can do a reverse mortgage – basically selling the house back to the lender. You can live in it with no payments while the lender takes back the equity on the home until they own it. (Actually this is probably not an option since you are “upside down”, i.e. you owe more than it is worth).
    You could also do a “Deed in Lieu”. This means surrendering you deed in lieu of a foreclosure if you really think you are in a financially bad situation. You basically hand it back to the lender for free.
    There are investors out there who would buy your home for a profit. It would be a quick sale, and you probably wouldn’t see any profit from it. It is an option thought. You can find them listed in the local papers classifieds section with ads that say “we buy houses”.

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