Creative ways to sell my personal residence?

4 Replies

Afternoon Everyone,

I am a long time reader, lurker, and podcast listener. I have wanted to get involved in real estate in one way or another for a long time now, but have just never jumped in. Now I might be in for a crash course in creative real estate...

We want to sell our house that currently has no equity and we have no cash saved up to pay to get out of the house. My HOA does not allow for the homes to be rented. I was thinking that selling the house subject to existing financing might be an option to get out of the house without having to pay anything. I would also want the buyer to get their own financing in 12-24 months or something like that in order for us to be able to pay the loan off.

Does this make sense? Are there any other options?

Your help is much appreciated.

Look at your previous mortgage details (or ask the servicer), it probably doesn't allow assumption of the mortgage.

As a first choice, I'd suggest working with your lender to do a short-sale.

The last option would be Deed in Lieu of Foreclosure.  That would damage your credit but not as much as foreclosure.

Worst than last (because it doesn't answer the question you asked) would be to get a roommate ($400/mo) and another job for you and partner.  Put on some blinders and maybe you could have $20k saved in six months.

By "no equity", do you really mean a negative equity. If so, how much?

What is the house really worth and what is the balance of the loan.

Pretty sure, but not positive, a short sale really hurts your credit.

Thanks for the responses. Our situation isn't so desperate that we would consider a short sale or anything similar to that. We want to move, but don't have to move.

Here are the numbers. We bought our house for $145,000, it's now worth about $135,000, and our mortgage balance is around $133,500.

Sounds like Raj's last suggestion might be the answer. Work hard and save enough money to get out of the house.

Thank you.