If you owe about what your home is worth, or more, selling the usual way can be hard. Agent commissions and closing costs often run 8–10% of the sale price. On a $300,000 house, that's $24,000–$30,000 you'd need to bring to closing if you have no equity. Here are the realistic options, with the honest pros and cons of each.
1. Talk to your lender first
If the problem is that the payment has become hard to afford, call your loan servicer and ask about a repayment plan, forbearance or loan modification. These can lower or pause payments. It costs nothing to ask, and a free HUD-approved housing counselor can help you prepare.
2. List with an agent and bring cash to closing
If you have savings, you can list normally and pay the shortfall at closing. It's simple and ends your connection to the loan, but it can be expensive.
3. Rent the house out
If rent would cover the mortgage, taxes, insurance and repairs, keeping it as a rental buys time for values to rise. The downside is being a landlord, and the risk of vacancies and repairs.
4. Short sale
Your lender may agree to accept less than you owe. It usually takes months, needs lender approval, and typically hurts your credit, though often less than a foreclosure. Depending on your state and your loan, the lender may still be able to pursue you for the difference, so ask an attorney.
5. Deed in lieu of foreclosure
You give the house back to the lender voluntarily. It avoids a foreclosure sale, but you usually walk away with nothing, and your credit is affected.
6. Sell "subject-to" your existing loan
A buyer takes over making your mortgage payments while the loan stays in place. You can often sell without bringing money to closing, and sometimes walk away with cash for moving. The trade-offs are real: the loan stays in your name, and the lender's due-on-sale clause could come into play. Read our full explanation of subject-to.
7. Talk to a bankruptcy attorney
If you have other serious debts too, a bankruptcy attorney can tell you whether Chapter 7 or Chapter 13 might help. Many offer free consultations.