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Adam at Hometown Development Co., took time to discuss the many facets of the sell of our beloved home house. Through one of the most difficult times for our family brought integrity, sincerity, understanding, and professionalism with every encounter. It was great working with him. A+ for Hometown Development Company
Month: September 2020
Arnetirious Wilkins
Adam was great to work with and is highly recommended. His sincerity, honesty, and transparency made everything easier. Thank you
Can I Sell My House If I Have a Mortgage?
When you sell a house with a mortgage, the buyer’s funds should cover the rest of your loan, with a bit left over in profit for you. But, if your asking price is lower than what’s left on your mortgage, you may run into problems. Let’s take a look at what happens when you sell a house with a mortgage.
Selling a House With a Mortgage
Many homeowners sell their homes with a mortgage. It’s pretty common that homes are sold before the mortgage is completely paid off. The sale of the home should pay off the remainder of the mortgage and hopefully leave you with enough profit left over to make a down payment on your next home. As long as the real estate market has stayed fairly stable since you’ve purchased your home, and you’ve kept the property in good condition, it’s likely you’ll be able to sell the home, pay off the mortgage, and move on to a new home and a new mortgage without issue. If the mortgage is not paid in full by the sale of the home, the situation becomes more complex.
Will the Sale Price Cover the Mortgage?
To calculate how much money you’ll need to earn when you sell a house with a mortgage, start by asking your lender for the payoff amount. The payoff amount is the total sum you’ll need to fulfill the loan contract. Just using the remaining balance in your estimate won’t factor in the loan interest and other associated costs. Next, estimate your home’s value to get an idea of the price you could earn from selling. To do this, you might research similar homes for sale in your area, calculate the average price per square foot, and factor in the size of your lot and if you’ve recently completed any major upgrades to the home. If you want to skip a formal assessment, there are calculating tools online that can help you get an idea of your home’s value. The estimated sale price should be able to cover the payoff amount, any other fees for property taxes, realtor fees, and leave some money left over for you to move to a new home. If it comes up short, this could mean you owe more on your mortgage than your home is worth. When this happens, your home purchase loan is considered to be “underwater.” If you want to sell a house with a mortgage that’s underwater, a traditional sale may not be right for you. However, you still have options to sell your home.
Can I Sell a House with an Underwater Mortgage?
If the principal on your home loan is greater than your home’s value, you may find yourself trying to sell a house with an underwater mortgage. There are a number of factors that can affect your home’s value and make selling a house with a mortgage difficult. If your home needs significant repairs, or the home’s value dips due to other factors, the sale value might not match the value when you signed the mortgage. Fortunately, you can still sell a house with a mortgage that’s underwater. You can work with your lender to sell in a short sale, or sell to a real estate investor for a quick, cash offer.
Sell a House in a Short Sale
In a short sale, the lender agrees to accept less than the original loan terms. In some cases, they may be willing to waive the remainder of the loan. The short sale means the lender is more involved with the sale of the home. They must sign off on any offers before they can be accepted. The short sale process can be lengthy, and involves a lot of paperwork and waiting for bank approval. If you want to sell your home quickly, you might want to consider another option.
Sell a House With a Mortgage to a Real Estate Investor
When you sell your home to a real estate investor, they will make you an offer, in cash, based on the market value of your home. Real estate investors have worked with many homeowners who want to sell a house with a mortgage and can offer you a quick and effective solution for your mortgage problem. If you’re looking to sell your home quickly, they can close on the sale in as few as five days. Since they will purchase your home in its current condition, you won’t have to worry about making repairs or changes to your home. Also, you won’t need to hire a realtor. A real estate investor can work with you to resolve your debt and help you out of your home and on with your life. If you’re selling your home, but aren’t sure you can recoup enough to cover your mortgage, talk to the team at Hometown Development. We regularly work with homeowners just like you, and we can find a solution that’s right for your situation.
5 of the Best Grand Rapids Neighborhoods for Families
As one of the fastest-growing regions of Michigan, the Greater Grand Rapids area has become a popular spot for young people and families. This area offers the opportunity to raise children in a welcoming and safe environment close to great schools with plenty of parks and things to do just around the corner. Here’s a look at some of the top up-and-coming Grand Rapids neighborhoods.
#1 Alger Heights
South of downtown is a great up-and-coming Grand Rapids neighborhood for families known as Alger Heights. With good schools, plenty of parks, and even a branch of the library located in its limits, Alger Heights is a great place to settle and raise children. This close-knit, diverse neighborhood cares about bringing people together and regularly hosts community events like movie nights, live music, and park activities. Alger Heights is close to shopping on 28th Street while being an easy commute to downtown and the beltline.
#2 Eastown
Eastown is known for being a progressive neighborhood with a rich history — with plenty of craft breweries, specialty cafes, and unique shops. Many young people have moved to Eastown to buy and refinish classic older homes, which has made the neighborhood popular for professionals relocating for work. Eastown is a short commute to state-of-the-art hospitals that employ many residents. This neighborhood enjoys a lot of greenspace and has access to many quiet parks and great public schools.
#3 Fulton Heights
Conveniently located minutes east from downtown and west from the beltline, the Fulton Heights neighborhood is a must-see spot that’s increasingly popular for young professionals and families. This quiet residential area has access to everything, including two large parks, a huge community garden, and the Fulton Street farmers market which is a popular draw for locals across Grand Rapids.
Homes in Fulton Heights tend to sell quickly, so interested buyers will need to keep an eye on the market if they want to raise their family in this beautiful spot.
#4 Heritage Hill
Located just southeast of downtown, Heritage Hill is known to be the most historic of the Grand Rapids neighborhoods. Its huge, perfectly preserved homes dating back to 1844 are spaced along brick streets lined with old-growth trees. With homes of every architectural style, Heritage Hill is a popular place for walking tours. With quiet streets and plenty of nearby parks, the area is also a draw for families.
The Heritage Hill neighborhood is close to downtown and easy walking distance to many great restaurants, bars, and coffee shops. Very few franchises have set up shop, meaning most neighborhood establishments are unique and have had roots in the area for a long time.
#5 Creston-Cheshire
With a population of over 27,000 residents, Creston is the largest of Grand Rapids neighborhoods, located to the north of the downtown area. The neighborhood is full of quiet suburban homes, tree-lined streets, and has access to many parks — including the beautiful Riverside park which is full of fun outdoor activities for families from disc golf to kayaking.
This area is growing quickly, with new restaurants, bars, and retail spaces opening up all the time. This community already has a growing culture, and in a few years could become its own unique hub.
Hoping to move into one of these top desirable Grand Rapids neighborhoods? Hometown Development can help! We regularly renovate and restore homes in these areas, offering buyers like you a rare opportunity to move into these highly sought-after neighborhoods. Let us know what you’re looking for, we may just have the home for you!