My stbx and I are wanting to sell our house because he lost his job. I also found out he was cheating for over a year so we want to separate ASAP. We are 2 months behind our mortgage, and the house probably needs a new roof. We don’t have a lot of money since I had to work my butt off to cover everything while he was jobless and cheating, so please help me understand how the process is with selling.
Can I sell the house and have it cover the months we were behind mortgage? Do we have to fix the house before selling? What can I do in my situation to sell the house and get some money back? Thank you.
Yes, when you sell the house, the mortgage and any fees due will be paid off from the proceeds of the sale. Try to move quickly because everything takes time, and investors will try to beat you up if they think you are running out of time before a foreclosure. Not sure how active the market is where you are, but it never hurts to notify the neighbors. People will come out of the woodwork for a good deal. You can ask a couple of agents to run a market analysis and give you a written proposal of what they think you can get for the place ‘as-is.’ Let them know you have to convey the information to other family members and that you need the analysis in writing so nothing is lost in translation. The analysis should include a few recent sales or comparable properties. Hopefully, you guys have enough equity so that you can sell at a bargain price and still pay off the loan and additional fees or interest that will be accruing.
Wow, thank you so much for all that information. I truly appreciate you taking the time to comment and help me. We bought our house at $210K and right now it’s valued around $390K. I hope that helps a lot. Thank you again for your help!
What a dream it would be to buy a house for 210k now. Sad to hear you are behind on your payment knowing the person buying from you is likely going to have a mortgage double what you pay now. 400k at 7.3 interest is essentially 1 million over 30 years.
If the $390k value is from the tax assessment, keep in mind that those assessments often do not reflect the condition of the house. If you need a new roof in the near future, a potential buyer will want some kind of concession. If you have that much equity, you should be able to get out of there with money in your pocket. Just keep in mind that time is working against you, if you’re not making mortgage payments – I understand why, but the bank won’t care. It sounds like you guys will be best suited by listing your property with a large company in your market.
Find out what agents have experience selling property in your neighborhood. Call 2-3. Interview them. Pick the one with the best plan to sell it for the most, not the one that just promises you the most.
Let your bank or mortgage company know that you are selling the property. Hopefully, this will delay any foreclosure proceedings. It can be difficult to sell a house once foreclosure proceedings have started.
Look into a ‘short sale’ – it’s when you sell the house for less than what’s owed on the mortgage and the lender agrees to accept that amount. You’ll need to prove financial hardship (job loss counts) and the lender must approve it. You don’t have to fix the roof, but disclose it to potential buyers – they can factor repairs into their offer. Get a real estate agent experienced in short sales since they’re more complex than regular sales, and they can help negotiate with the lender. The missed payments can typically be rolled into the short sale settlement. Document everything about your ex’s job loss and inability to contribute – this strengthens your hardship case with the lender. Just know your credit will take a hit, but it’s often better than foreclosure. Contact your lender’s loss mitigation department ASAP to start the process.
You can do a couple of things depending on your market. In certain parts of CA, interest rates are so high that not many people are buying right now. This leaves homes on the market for an average of 90 days in my area. The reason why I bring this up is because you have a couple of options: speak with a real estate agent. More than likely you’ll have to make repairs to make your property competitive, and depending on certain loan types, people may not be able to buy your property. But speaking with a real estate agent will give you an idea. Keep in mind, they want to make their commission, so they’re going to encourage you to sell it. You can also speak with an ‘As Is’ investor who will buy your property without any hassle. Things to keep in mind: how long are you willing to keep your house and pay the mortgage on it? What repairs am I willing to make considering the time I have to hold on to the property? What pain will I cause by holding onto this property financially, mentally, emotionally? Me and my wife are a small team. If you’re interested in selling, we can help you work something out, but we’re not here for us. We’re here to make sure you make the best decision possible for yourself. Feel free to DM me if you’d like more info on selling your property.