Episode 25

What to Do if You Can't Afford to Sell Your House or It's "Underwater"

What can you do if you’re “underwater” with your home or cannot afford to sell it for whatever reason? 

An underwater mortgage situation is when your home purchase loan has a higher principal than what it’ll sell for. There are different ways to go about it, depending on whether or not you can still afford the payments. In this episode, Loren, Chris, and Cassidy explain adjustable-rate mortgages, short sales, and rentals to help you get an idea of the options you have in every situation, no matter how bad it is.

What you’ll learn:

  • What does it mean to be underwater with your home?
  • What can you do if you can’t afford to sell your house?
  • Think if you can rent it and how much you can ask as rent. If you decide to rent your home out, make sure the numbers make sense.
  • Refinance your mortgage. Having a conversation with your lender about refinancing can help you get into a better spot.
  • Look at a potential short sale. Negotiate with the lender to take less than what's owed on the home because it makes sense for them to do it based on the situation. Remember, the only real reason to do a short sale is if it’s the only option.
  • Talk to a professional about it before deciding on what to do.

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About the Podcast

Show artwork for How to Sell a House
How to Sell a House
Everything you need to know about how to sell your house