Also, it is bananas that a house like that is one is only 849k.

WelcomeWhat is your equity position in your current house? 

This prevents the foreclosure from damaging their credit for years, but also does not return equity.The homeowner may consider selling the house on the MLS or FSBO.  

My daughter and grandkids would get the house. 

The January 2025 report from the Austin Board of REALTORS® (ABoR) shows stable housing prices and balanced market conditions in the Austin metro as we start the new year.

Quote from @Jeff Calcaterra: We have a potential tenant new to the area who has gone through a paid background check, signed a background check authorization form, sent us a LinkedIn profile, sent an offer letter and says he is willing to send us paycheck stubs, but says he doesn't want us to call HR to verify employment because he is supposed to have found housing already.

If not, they may consider building the ADU and down-sizing into it and renting out the main house.

Purchase price: $275,000 Cash invested: $45,000 Sale price: $410,000 Contributors: Adam Schooley This townhouse, which had gone through probate, suffered from significant water damage to the drywall and required updates throughout.

If you decide to keep your house, you can do an IRRRL after you have made at least 7 payments on your new mortgage.

For example if the house is worth 400K, but they are willing to sell it for 375k because they are avoiding having to pay 25k in agent fees, then the bank can consider the equity gap as a down payment.