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Do You Owe More on Your Home Than it is Worth?

DFW Realties specializes in all types of Dallas homes for sale, including short sales. A short sale takes place when a seller owes more to the lender than the home’s market value, and even though this scenario isn't ideal, we can help. Lenders are often more than happy to take less than a full payoff on a loan because it costs them a lot of money to foreclose. If you owe more than your Dallas real estate is worth, then you have a likely short sale scenario, since most offers made on your home will be for fair market value or less.

When you receive an offer on your home that is short of your full mortgage payoff, you have a potential short sale scenario where it becomes important to have experienced agents who understand how to work with your lender. Having worked on the lender side, DFW Realties understands what lenders look for when approving any short sale deal.

It is important to understand that lenders generally do not make quick decisions when deciding whether or not to accept a short payoff on Dallas real estate. Often, lenders make take a few weeks to be able to determine their own value of the seller’s property. However, a patient seller will generally see a lender approve a short sale after a few weeks once the lender determines that it makes sense for them.

What Do I Gain By Listing a House in Which I Have No Equity?

A seller who is able to get a short sale approved by their lender has many advantages over one who just lets the home go through the foreclosure process. When a lender approves a short sale, the lender charges the remaining balance of the loan off, and the seller is not responsible any more for the remaining (or deficiency) balance. The seller’s only responsibility in this instance is to report this charged off money as earned income for tax purposes, which is really only a small price to pay compared to what the lender has forgiven.

What Can I Lose By Failing to List My No Equity Home?

The consequences of just letting your no equity home go into the hands of the lender without listing the home are considerable. First, the lender will not forgive any deficiency judgment that remains after the foreclosure sale. Take for example a home that is currently worth $140,000 where the amount remaining on the seller’s mortgage is $170,000.It is pretty much a given that at the foreclosure sale, the lender is not going to get any more than $140,000, which is fair market value. In slow markets, the lender will receive even less than that! Now, to the seller who failed to attempt to sell his property, the mortgage company will come after him for the $30,000 that remains on the loan. Lenders take deficiency judgments seriously, obtaining judgments and attempting to enforce those judgments through various means including wage garnishment and bank account attachment. The only way for a seller to get out of this harrowing scenario is to declare bankruptcy, which is not nearly as simple as it used to be due to recent changes in the bankruptcy code.

In conclusion, selling your home where an upside down loan exists is almost always preferable to letting it go into the hands of the lender. By listing it with an experienced realtor like DFW Realties, you will be able to avoid a judgment, wage garnishment, or the last effect of bankruptcy.

If you think your home is in this “upside down” situation and you are looking to sell it, just fill out the form below and DFW Realties will contact you to help you through the process:

Name
Email
Phone
Amount You Owe (please list all mortgages)
Most Recent Appraised Value (leave blank if unsure)

Contact DFW Realties now!