How do you sell your house if you owe more than it's worth?
- Stay and Pay. There are several reasons you might choose to keep making the payment on a house, even if you owe more on it than it's worth.
- Get a Loan Modification.
- Go for a Short Sale.
- Walk Away/Foreclosure.
Also question is, what happens if you owe more on your house than it's worth?
When you owe more money on your mortgage than your home is worth, your mortgage is considered to be underwater. No homeowner wants to be underwater. It can be difficult, if not impossible, to earn a profit when trying to sell an underwater home.
Additionally, can you sell a home you haven't paid off? The simplest way to sell a home you still owe money on is to sell it for more than what you owe. When the home is sold, those funds are used to pay the remaining balance on your loan and you can retain the remainder (if any) as profit on the sale.
Moreover, can I sell my house if I am in negative equity?
Selling your home when it's in negative equity will break your mortgage terms, will be expensive and should only be an option if you're in severe financial trouble. You will need your mortgage lender's permission to sell the property if you know you won't get enough from the sale to pay back what you owe.
How do you sell my house that is underwater?
- Option 1: Stay in your home and work to build more equity.
- Option 2: Refinance your mortgage.
- Option 3: Sell your house and use your savings to pay the amount you still owe.
- Option 4: Sell your home through a short sale process.
- Option 5: Foreclose on your home.