What is an Equity Sale?
Equity is the positive difference between fair market value and any outstanding liabilities (debts) associated with the property.” Assets – Liabilities = Equity. Liabilities. The formal definition of equity is: The difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.
I Have Equity, Now When to Sell?
With an equity position in your house, you are in control and have the flexibility to try and “time the market”. This is where a good real estate agent/team earns their money. A good agent can advise you on many different variables, such as current market trends, market statistics, seasonal market trends, and many other issues you should consider when thinking of selling your home.
I Do Not Have Equity, What Can I do?
There are a few options available to you if you do not have any equity. One option is a short sale; a short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property. In addition, the property owner cannot afford or chooses not to repay the liens full amounts.
Will a Short Sale Hurt My Credit?
This question is asked very frequently and involves a number of unique variables. The first thing to keep in mind is that the moment you are 30+ days behind on your mortgage payment, your bank has the right to report to all of the credit bureaus that you are 30 days behind on your payments. When a late payment is reported to the three major credit bureaus, it does have a direct affect on your credit.