How to Sell a House That’s Underwater: Navigating Your Options
Disclaimer: This article is meant for educational purposes only and is not intended to be construed as financial, tax, or legal advice. HomeLight always encourages you to reach out to an advisor regarding your own situation.
A sudden job loss or market dip can flip your entire world upside-down, threatening your ability to stay on top of your mortgage. When you’re behind on your payments, you need to proactively decide how to deal with your debt, or your lender will make the decision for you: foreclosure.
“People need to understand to call first and ask for help instead of beg for forgiveness later,” shares top real estate agent Billy Alt, who sells 65% more single-family homes than the average Las Vegas agent.
The sooner you reach out for help, the better your odds for financial recovery.
In this extensive guide, we’ll outline your options for taking control of a home that’s worth less than you owe, including how to sell your home if it’s underwater:
Stay in your house to build equity with a loan modification or forbearance.
Refinance with Fannie Mae’s High Loan-To-Value Refinance Option (HIRO)
Sell your home and cover the difference with cash.
Arrange a short sale with your lender.
Walk away voluntarily with a deed-in-lieu of foreclosure.
Face foreclosure as a last resort.
