Take Lower Offer

Kathy can't sell her out-of-state property for the amount of its mortgage, but he has the savings to cover the difference.

QUESTION: Kathy has a $30,000 mortgage on an out-of-state property.  She’s only getting offers of about $20,000.  She has $30,000 in savings and wants to know if she should take the lower offer and use $10,000 from her savings toward that.

ANSWER: Yes!  I’ve been there, done that!  You’re either going to rehab the property and try to get your full $30,000 out of it, or you’re going to sell it.  It’s only worth $20,000, so unless you want to be in the rehab business, long-distance, you need to sell it and use $10,000 from your savings to make up the difference.