How to Walk Away From a Negative Equity Mortgage

How to Walk Away From a Negative Equity Mortgage

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It seems like every day your dreaded mailman brings your more bills to pay. You stack them up and worry about where to get the money. You may even have a negative equity mortgage that you can’t afford. In some cases, the bank may already be threatening you with foreclosure and eviction.

You’re tired of fighting to keep a home that has no equity, and you’ve begun to wonder how you can walk away from the mortgage. Here are a few things that you need to know.

What Is a Negative Equity Mortgage?

If you have a negative equity mortgage, you currently owe more in principal than you could make on the sale of the home. For example, you currently owe $200,000 on your mortgage — this is the principal — and you could only sell the property for $175,000. You have $25,000 in negative equity in your mortgage. 

This occurs for a variety of reasons. Perhaps, you bought your home when the market was booming. It’s also possible that you put very little towards the down payment. The best thing about down payments is that they typically establish immediate positive equity in a mortgage.

Another possible reason that you have a negative equity mortgage is that the home’s value has declined. This could be due to a declining housing market, which is cyclic, or it could be due to a declining neighborhood. Another culprit is little to no maintenance completed on the home during your time living there. 

Is It Possible to Walk Away From a Negative Equity Mortgage? 

Yes, you can walk away from a negative equity mortgage; however, it might not be easy or quick. There are three major ways to walk away from this type of mortgage, including:

  • Sell your home the traditional way: You can hire a real estate agent and put your home on the market. The problem with this solution is that it can take a lot of time, and you may need to wait for the buyer to secure financing.
  • Return the home to the bank: Banks don’t like for you to know it but you can abandon the home and return it to the bank. Of course, there’s a process for doing this that may take a lot of time, and there’s plenty of paperwork involved.
  • Find a company that buys home quickly for cash: If you sell your home for cash, you can close quickly. Sometimes, the buyer is ready to close in as few as 10 days. You probably won’t need to make any repairs or updating to the property either. 

Your best bet to be out of your home quickly with as little damage possible to your credit is to sell your home quickly to a company that offers the cash payment. 

Benefits of a Quick Cash Sale When You Have a Negative Equity Mortgage

How to Walk Away From a Negative Equity Mortgage

When you have a negative equity mortgage, you may feel like your under constant pressure to do something about it. This creates a lot of unnecessary stress in your life. A quick cash sale of your home offers the best solution to walk away from this situation and gain a fresh start. Here are a few of the reasons to choose this option:

Quick Offer

Companies that specialize in buying homes that have negative equity mortgages understand the stress you’re under and work quickly to make you an offer. In many cases, the company can make you a cash offer in as little as 24 hours. This is less time than it would take a real estate agent to get your home’s photos up on Zillow.

These companies know the real estate market and take the time to look at your particular neighborhood for similar homes that have recently sold. After visiting your home and taking a tour, they will determine the value of your home. Many times, the company will make you a competitive offer in cash. The amount they offer to buy your home will be close to what you would receive if you went the traditional route.


With a quick cash sale, you can avoid the hassle of listing your home on the real estate market, prepping it for sale, and being always ready to show your home. Your real estate agent will want to stage your home with the right furniture and showpieces. They might even ask you to paint your walls or clean the carpet before photographing it. You can avoid a lot of work with a quick cash sale.

Once the house is listed, you’re expected to keep your home spotlessly clean and ready to show with a moment’s notice. After you get the call that a prospective buyer is on the way, you have to leave your home and go somewhere else for a period of time. It’s just more convenient to sell your home to a company that offers quick cash sales. 

No Need to Make Repairs

After an initial walkthrough, your real estate agent will present you with a list of repairs to complete. This can be anything from a few roof tiles to appliances in the kitchen. At a time like this, you really don’t need any more out-of-pocket expenses. You might not even have the means to make the necessary repairs. After you find a traditional buyer, they may request even more repairs.

If you go the quick cash sale route, you don’t need to make any repairs before turning over the house. The company will deduct any serious repairs out of the asking price so you don’t need to spend any more money.

Quick Closing Date

When you sell your home the traditional way, your closing date will be at least 30 days in the future and as long as 120 days. The date depends on when the buyer wants to move in and how long it takes them to arrange to finance the mortgage. With a quick cash sale, you can choose a closing date from 10 to 60 days. You can be out of your home in a couple of weeks. 

Walk Away from Your Negative Equity Mortgage

At House Buyers Cash, we’re ready to help you extricate yourself from a negative equity mortgage. In 24 hours, we’ll make you a competitive cash offer and close as soon as you need it. Please contact us today. 

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Why Wait? Sell Your Home Now.​

You probably have enough on your plate. Why stress over months of trying to list and sell a house? Trust House Buyers Cash to deliver you a cash payment for your home. We don’t tie you down in hidden fees and lengthy contracts. You won’t have to deal with time-consuming and costly inspections, appraisals, or repairs.