Wednesday, April 24, 2013

Underwater? No Equity? No problem!

10:13 AM
If you bought your house between 2004 and 2008, chances are you are still underwater, meaning that the mortgage you took out on your house is higher than the purchase price you would receive if you tried to sell today. Yet the average American family moves every seven years or so, and perhaps this is an option you would like to consider - if only you could get out of that mortgage without bringing money to the closing table or having to do a "short sale."

Well, you do have another option. I buy or lease houses that are underwater, have no equity, or are worth today no more than the balance owed on the mortgage. If you would like a FREE, no-obligation consultation to learn more about options to sell your house, then give me a call.

It does not matter if the mortgage balance exceeds current market value; in fact, that is usually the type of seller whom benefits the most from this approach. A ten-year term allows the seller's equity to catch up to the mortgage balance, and the buyer to clean up their credit or otherwise qualify for a conventional loan. I place tenant-buyers into nice homes they would like to buy in all areas of Seattle.

The lease would be for the same amount as the monthly mortgage, taxes and insurance; and the purchase price would be for the remaining principal balance on his mortgage at the time of cash out. I would want the longest term possible, at a minimum of ten years, but with the option to cash out any time.

This offer would be subject to a title review and inspection; but Buyer would lease/purchase "as-is". Seller/owner would be prohibited from any additional indebtedness during the term of the lease agreement. The transaction would also be subject to a review of the existing loan documents.

If any brokers have clients for whom this approach might make sense, please let me know. I always pay the listing broker or a referring broker 100% of the first month's rent. This is often much better than losing the listing, or seeing a client go into foreclosure. This option would not include any Selling Office commissions; but I would pay a Listing Broker the equivalent of one month rent upfront. There would be no funds to the seller, other than the lease amount, which would be applied in full towards the mortgage loan repayment, taxes and insurance.

Should you decide that a listing on the NWMLS is the best direction for you, I would be happy to talk with you about a listing or to refer you to brokers and short sale negotiators who can help you through that process.

To learn more, please contact me today at or call 425-270-7292. I assure you that our conversation will remain strictly confidential, at no cost to you whatsoever, and that the decision about your house is totally up to you. I look forward to hearing from you.

Wendy Ceccherelli

Photo courtesy of


Post a Comment