Selling a House With Little Equity in Slidell

Some homeowners in Slidell find themselves in a tough position when repairs stack up and the mortgage balance is almost the same as the home’s value. That was the case with this property in St. Tammany Parish. The house was in decent shape overall, but it needed updates that would make a traditional sale difficult once commissions and closing costs were added in.

The sellers had a low interest rate, which made the situation more unique. A standard cash offer would not have helped them, since paying off the mortgage and making repairs would have left them writing a check at closing. In the video, Aussie Steve walks through the property, breaks down the condition and the needed updates, and explains how a creative takeover payment deal might help the seller walk away without financial strain.

This visit was the first step in reviewing the numbers, looking at the payment terms, and determining whether a subject to purchase could be a good fit for both sides.

You can watch the video to see the property and hear more about the situation, or read the video transcript below.

Video Transcript

Hey it’s Aussie Steve here from Home Buyer Louisiana. We buy houses in any condition in Louisiana. I’m here at a property we’re looking to purchase and I’m talking with the seller now, trying to figure it out. We’re in Saint Tammany Parish in Slidell. It’s an interesting property. I’ll show you around in a second. It’s not in too bad a condition. There are a few things that need to be done, but if you’ve watched any of our videos you’ll see we buy a lot worse than this.

The problem with this property is there is a lot that needs to be done and there’s a mortgage on the property. They bought it only a couple of years ago and with what has happened to the market, they pretty much owe what the property is worth, particularly when you factor in the repairs. If they were to sell it with a realtor and pay the commission, they would probably have to bring a check to closing, and no one wants to write a check to sell their house.

One thing they do have though is a low mortgage rate, a mortgage rate with a 3 handle. Those rates aren’t available anymore. We definitely can’t make this work as a cash offer. Even a homeowner getting a mortgage today probably couldn’t make it work with what they owe once you factor in all the other costs. We like the mortgage rate and we have rentals in Slidell, so we’re discussing a takeover payment deal where we wouldn’t pay off the mortgage at closing but would instead purchase the property subject to that mortgage and start making the payments on it.

Because we don’t need to bring the cash, we don’t mind paying a higher price even above market, since it’s not about putting cash into the property and trying to get it back out. What we’re actually doing is keeping that mortgage against the property and securing a lower payment than we could get today. That can work for us. We can pay the seller a little money at closing, get into the property, get it rented out and turn it into a nice rental. The seller can get some money at the closing table and walk away. If we paid off the loan and the cash all went against the loan, the seller wouldn’t really get it, so this can be a good solution in the right circumstances.

The house itself is pretty nice. The living room is in great shape and there’s a nice backyard. There are issues like cabinets being off and some older appliances. The carpet is dated and not really to today’s taste, but it’s not too bad. I think there’s an issue with the flushing in the plumbing, and some wallpaper is peeled. It needs some flooring, cabinets, paint, and probably removal of the popcorn ceilings. From our perspective, that’s a relatively low rehab, but to put it on the market you need updates because most buyers don’t want a house like this without them.

If they did the updates and put it on the market, once you take realtor fees and commissions into account they’d likely have to write a check at closing and pay off the mortgage owed. This is the first time I’ve seen it, so I’m here running the numbers. When we have these sorts of deals we look at the house and also the mortgage, what the terms are and what the payment is, because I’m trying to put those two things together. I like the property and the location. We have rentals nearby and the interest rate is attractive, so there are a lot of good things happening here. I’m going back to the office to see if I can figure it out for the seller.

If you’re looking to sell a property in Louisiana or the Mississippi Gulf Coast, reach out to us at HomeBuyerLouisiana.com. It could be a complicated deal that needs a creative solution or it could be a simple cash offer when that works. Give us a call. We’ll make you an offer. There’s no pressure, you can take it or leave it. Even if you don’t take it, we’re happy to help and give you advice. We want to get the best outcome for you. Reach out at HomeBuyerLouisiana.com. Thank you.

Need to sell a house fast in Slidell?

If you have a property in St. Tammany Parish and the numbers just aren’t adding up, our team can help you work through the options. We buy houses as-is for cash in nearby communities like Mandeville, Lacombe, Covington, Abita Springs and across the Northshore. Whether you’re dealing with repairs, an inherited home, storm issues or a rental you no longer want to manage, we offer simple solutions that help you move on without stress.