Can you sell a home in Snohomish or King County if you owe more on the mortgage than the home is worth?
Yes, you can sell a home that’s underwater on the mortgage, but it requires lender approval and a clear strategy. When the loan balance exceeds the market value, sellers often pursue a short sale or negotiate directly with the lender. REALTOR® Marie‑Noelle Metseye helps homeowners understand their options, minimize credit impact, and move forward with clarity.
What Does It Mean to Be Underwater on a Mortgage?
A home is considered underwater when the total mortgage balance is higher than the property’s current market value. This can result from market shifts, refinancing, high-interest loans, or buying with little down payment.
Step 1: Confirm the Home’s True Market Value
Before assuming the home is underwater, it’s critical to get an accurate valuation. Marie‑Noelle provides a detailed market analysis based on recent Snohomish and King County sales.
Step 2: Review All Loan Balances and Liens
Important details to review include:
• Primary mortgage balance
• Second mortgages or HELOCs
• Missed payments or late fees
• Loan type and hardship requirements
Step 3: Consider a Short Sale
A short sale allows the lender to accept less than the amount owed. While it takes time and documentation, it can help you avoid foreclosure and reduce long-term financial damage.
Short sales can:
• Stop foreclosure proceedings
• Provide more control over timing
• Be less damaging than foreclosure
Step 4: Prepare a Lender Hardship Package
Most lenders require proof of hardship, such as job loss, medical expenses, divorce, or rising costs.
Marie‑Noelle helps coordinate the sale timeline while you work with your lender and licensed professionals.
Step 5: Price the Home at Fair Market Value
Overpricing often leads to lender denial. Pricing must reflect current market conditions and buyer demand.
Step 6: Work With Buyers Who Understand Short Sales
Short sale buyers must be patient and financially qualified. Clear communication keeps deals on track.
Local Market Insight
Underwater mortgages can occur in any market, including Everett, Lynnwood, Bothell, Shoreline, Seattle, and Renton. Strong buyer demand in both counties means qualified buyers still pursue well-priced short sales.
Conclusion: You Still Have Options
Being underwater doesn’t mean you’re stuck. With the right strategy and expert guidance, many homeowners sell successfully and avoid foreclosure. REALTOR® Marie‑Noelle Metseye provides knowledgeable, compassionate support throughout the process.
If you believe your home may be underwater, contact Marie‑Noelle for a confidential consultation and personalized plan.
