Wants to sell, but not enough equity and not behind on payments - what to do?

I have a homeowner who wants to sell his home.

He owes $360k. His house was listed for 3 months at $395k and it did not sell.
I’m an agent(but a very new, unexperienced agent) so I can re-list his house, but chances are it won’t sell again.
What should I do?

He owes the bank $360k, so how much above that price does the home have to sell for in order to take care of all the expenses (closing costs, commissions, etc).

What if it doesn’t sell for a good price, can I contact the bank and have the bank discount the amount owed, as done in a short sale? Even though the person is not behind on payments?

Anyone have advice on how I can handle this?

Not behind in payments you can’t do much but list it and wait until it is behind in payments are try to get some sort of shortsale.

What is the market value of the home?

And you know… every month he starts falling behind in payments the more he will owe the bank and the less margin for any profit whatsoever you will have.

tell youre client to sell his house owner financeing,then he could
sell the realestate note

Mr Cash,

That doesn’t solve his problem… he has no equity and selling a note is as good of a solution as selling it through a realtor.

Happy 4th everyone!


70% of home buyers need more flexible terms than banks and mortgage companies offer. This means your frien/client as the seller have to wait and wait to sell his home.

You friend/client may show his home to 10 prospective buyers, and none qualify to purchase.

Some FSBO homes sit idle for many months at a time until a buyer comes along that qualifies for conventional financing, these buyers pick his home apart trying to reduce the price. Many FSBO home owners, give up and en up listing with an agent, to reach “pre-qualified” buyers. The seller ends up giving away 6% of the equity of the home, accepts a reduce price offer AND shares closing cost. This does not have to happend.

Your friend/client want to sell his home quickly, and easily right now for full appraised price. Simply tell him to mention that he offers owner financing, with 10% - 20% down.


When carrying back some of the financing to make the sale happend. He want the note to become a valuable asset, so that if he decide to liquidate the note, he receive the best price.

The buyer must have 10% cash or more down, the interest rate must be 9% or better, note must be amortized over thirty years with a balloon due in about 7 years, credit score must be a minimum of 600. First lien position is preferable .

If your friend/clients note has these tipes of terms, the note shoud be valuable and receive the highest purchase price possible. If the terms differ such as smaller down payment, lower interest rate, lower credit score, is a second lien than his note will not be as atractive of an investment, and will not receive the best offer.

Does all this make sense?

Luiz :deal