What about my home Equity?
To free themselves from debt and save their credit rating, many home owners are willing to forfeit the little equity they have remaining. If there is a desire to move or sell, Takelist.com is the next best option. If the Home Owner wants to capture some of the equity, they can request the buyer to provide a cash payment for the equity. Legal documents would be necessary to accomplish this. Sellers who have a lot of equity use traditional selling versus finding a buyer to assume their mortgage.
- Home equity = The difference between the market value and the outstanding balance of all liens on the property.
- True equity = The amount you can capture in cash. This is normally received in a check when you close a loan.
It is important to recognize that there is a difference between the two terms.
Example- Sellers who have little equity in their property should realize that even though it is called Home Equity, you will not be able to get 100% of it. Only a portion of it is the true cash equity. Home equity is appealing to buyers. True equity is appealing to sellers.