We don't all get to time the market! Sometimes you have to sell when it's not exactly profitable to do so. This is often the case when you bought a home during the peak of a market cycle and need to sell soon after, or when the market has turned downward. This is very common in currently as the market has shifted downwards. If you need to relocate and lack the equity to sell, you have a few options:

Pay the Difference

This may be possible if you have some additional cash and wish to have the cleanest break. To figure out exactly what the shortfall would be, you will want to talk to a local experienced Realtor to get an idea of what the home would sell for and to also estimate the cost of sale (commissions, title fees, legal, taxes, prorations etc. Make sure you have an accurate assessment of what the amount will truly be.

Rent the Home

Renting is always an option, but you should carefully consider whether it makes sense for you. Who will maintain the property and make repairs? What will the expenses be? Are you ready to be a landlord? And most importantly - will you make a profit. Market cycles can take 10-20 years at times. You may end up holding the property longer than expected, so weigh the pros and cons carefully.

Consider a Short Sale 

Lenders understand that sometimes a homes value may be less than it's market value and have a solution for owners who lack the funds to make up the difference. This is called a short sale. A short sale is documentation and negotiation process performed by a qualified short sale real estate professional. If approved for a short sale, the lender agrees to settle the loan for less than is owed so that everyone can avoid foreclosure.

Let the Home Foreclose

You may be tempted to simply walk away from the home, or "give the house back to the bank" Unfortunately giving it back is not a real option, and walking away leads to foreclosure. The foreclosure process can take years to complete, and even when the foreclosure is complete, you may face additional problems. If you live in a deficiency judgment state, this gives your lender the legal option to pursue you for their losses after the foreclosure.

Considering a short sale and have questions? In the middle of a short sale and need help? Wondering about what happens after your short sale closes? Ask away! Get all your short sale questions answered by short sale veterans here!

Author Minna Reid is a Real Estate Broker specializing in short sales in FL and short sales in CT, since 2007.

Original Article: https://myfloridahomesale.com/how-can-i-sell-my-house-when-i-owe-more-than-its-worth/