Don't Do It Alone
Partner up to meet YOUR financial goals!
Don't Do It Alone
Partner up to meet YOUR financial goals!
Do I need to lose most of my equity when I sell my home?
Most of the time, we expect to get some money back when we sell a home – everything that's left over after paying off house debt and fees. That money is called equity, and, well, home equity can sure come in handy. It might have been building up for a while.
Now, sometimes we are in a hurry to sell a house – and this rush can reduce the equity coming back to us at the very time we need it most. Selling at a deep discount is sometimes necessary, especially if the house is in disrepair, but what if the house is just fine? Does it seem fair to give away most of our equity? Is there another way?
Here are a few situations where this can happen. Can you relate?
Your employer is forcing you to relocate. Move now, or lose your job. You're not excited about making two house payments until your original house can sell.
Your lender plans to foreclose on your home soon. A deadline is looming. If the bank gets most or all of your equity, this will be a financial disaster.
You or a loved one needs to move into assisted living immediately. That isn't cheap . . . .
You are the executor or trustee for an estate. Unpaid payments are piling up, and you don't want the inheritance to go to waste.
You're going through a divorce. Suddenly, you have more costs and less income. How will you stop your home from getting foreclosed on?
Find Yourself a Partner!
Here's a crazy idea that seems almost too easy and too good to be true: what if someone else could make payments on your behalf, make a few repairs to the home, help you sell the house on the open market, then let you keep most of your money? Guess what: it can happen if you have enough equity in your home! This is not a typical investor offer – it's available through legal contracts with a partner that can be custom-made for your situation. There are many possible benefits. Here are a few examples:
Keep more money – Someone who will live in your house can afford to pay more than an investor. If the contract with your partner is set up properly, you stand to get more money by selling to such a buyer.
Don't just save your credit – rebuild it! If you are already behind on payments, then someone catches up your loan and keeps making payments, watch your credit score improve!
Get money up-front – Did you know there are companies that will advance a large portion of your home value to you prior to final sale?
Save your sanity – Chances are, if you're in a predicament, you have other headaches that deserve your attention. Let some else lighten your load.
Selling your house shouldn't destroy your financial situation. I want you to see the best possible outcome!
How Does It Work?
You are unique, and no one has exactly the same situation as you, so your partnering agreement might be different than someone else's. Still, here are some good rules of thumb:
A partnership is a business relationship, and even if the partnership doesn't last forever – it only needs to last until your house is sold – both sides need to be on-board and trust each other. Make sure you know whom you're dealing with.
From the beginning, legal agreements need to document clearly how things are going to work. There needs to be a way to enforce the contract.
Make sure someone explains to you how things will work.
The goal should be to bring you peace of mind. When it's done, you should be happy that you did it.
Frequently Asked Questions
If I do this, am I a customer or a client?
Probably neither – you are a partner! You are working together with another party, and a legal contract is protecting the interests of both sides.
