Sell a House You Owe More On Than It's Worth
When the payoff is bigger than the value, an ordinary sale cannot close. A short sale asks the lender to accept less than it is owed and release the lien -- which works, but only with a buyer who will still be there months later.
Being underwater is a math problem, not a character flaw. When the payoff is higher than the value, someone has to agree to take less -- and that someone is your lender, which is why a short sale hinges on patience and a complete package.
What you are dealing with
Sound familiar?
- Owing more than the house will bring, often after a cash-out refinance
- A lender packet that keeps asking for one more document
- Retail buyers who walk after the second month of waiting
- A foreclosure date running in parallel with the negotiation
Questions sellers ask us first
- “Will the bank come after me for the difference?”
- “How long does approval take?”
- “Does it cost me anything?”
What you will need
- • Mortgage statement and payoff
- • Two months of bank statements and pay stubs
- • Hardship letter
How it works in Tennessee
The timeline, the law, and your options
- Step 1
Hardship package
The servicer requires a hardship letter, financials, and a signed purchase contract before it will review anything.
- Step 2
Valuation
The lender orders a broker price opinion or appraisal and measures the offer against it.
- Step 3
Approval and closing
An approval letter sets the net the lender must receive and an expiration date. Closing must happen inside that window.
Legal notes
- • Get the approval letter's deficiency language reviewed -- whether the lender waives the shortfall is negotiable and matters enormously.
- • Forgiven debt can carry tax consequences; ask a CPA about your situation.
Your options
- • Bring cash to closing to cover the shortfall
- • Deed in lieu of foreclosure
- • Negotiated short sale with a buyer who will wait
How we handle it
What selling to us looks like
We negotiate the short sale ourselves, at no cost to you, and we do not walk. Our offer stays on the table through the lender's review, and closing costs come out of the transaction rather than your pocket.
- We assemble and submit the buyer side of the short-sale package the day we go under contract, so the file is not waiting on us.
- Our contractor's repair estimate, with photos and line items, is often what convinces a loss-mitigation reviewer that the value is what we say it is.
- We stay under contract through the review period instead of walking when the lender takes ninety days.
- If the lender counters, we will raise where the numbers still work rather than restart the process with a new buyer.
Our process
Three steps, no surprises
- 1
Tell us about the house
Call or send the address. We ask about condition, timing, and what is going on -- not for photographs or a clean house.
- 2
We walk the property
We look at it ourselves as a licensed contractor and price the repairs from real numbers instead of a padded guess.
- 3
Written offer, your date
You get a written, no-obligation offer, usually within 24 hours. You pick the closing date; we can close in as little as seven days.
Cash offer vs. listing
Compare the net, not the headline price
| Selling to Unique Construct | Traditional listing | |
|---|---|---|
| Repairs | None — we buy as-is | Seller pays before listing |
| Commissions | None | Typically 5–6% |
| Closing costs | We cover the standard costs | Often seller-paid |
| Showings | One visit from us | Open houses and lockbox |
| Contingencies | No financing, appraisal, or inspection outs | All three |
| Timeline | As little as 7 days | 45–60 days after a contract |
FAQ
Questions sellers ask
- Do I pay you to negotiate?
- No. Our fee comes out of the transaction, and short sale approvals typically require that the seller pay nothing at closing.
- How long does it take?
- Most files run 45 to 120 days depending on the servicer and whether there is a second lien.
- What if there are two mortgages?
- Second lienholders have to be negotiated separately. It is common and we handle it.
- Do I owe the difference after a short sale?
- It depends on whether the lender releases the deficiency in its approval letter. Ask for that release in writing -- we will push for it, but only your lender can grant it.
- How long does lender approval take in Tennessee?
- Typically 45 to 90 days from a complete package. Second liens and mortgage insurers add time, which is why we submit everything up front.
No obligation
Get a written offer
Tell us what is going on. We will be straight with you about whether selling is actually your best move.
Short Sale? Get your offer
No obligation, no fees, no repairs. Tell us about the property and you get a written cash offer within 24 hours of the walkthrough.
Related
Other situations we buy in
Short sale by city
Short Sale? Call (865) 277-6808 and we will tell you where you stand.
Call (865) 277-6808This page is general information, not legal or financial advice. Every situation is different — call us and we'll walk through yours.