You’re staring at the numbers, and they don’t add up. Your mortgage balance is $320,000, but your house would sell for maybe $285,000. After agent commissions, closing costs, and repairs, you’d need to bring $50,000+ to the closing table just to walk away.
If you don’t have that kind of cash sitting around, you’re not alone. Thousands of Denver homeowners find themselves in this exact situation — owing more than their house is worth and unable to afford a traditional sale.
The good news? There’s a solution most homeowners have never heard of that can get you out of this mess without costing you a penny.
Why Traditional Sales Are a Financial Disaster When You’re Underwater
When you owe more than your house is worth, selling through a real estate agent creates a financial nightmare:
The Real Cost of Selling:
- Real estate commissions: 5-6% ($14,250-$17,100 on a $285,000 sale)
- Closing costs: 2-3% ($5,700-$8,550)
- Repairs and staging: $5,000-$15,000
- Title insurance and fees: $1,500-$3,000
Total cost to sell: $26,450-$43,650
Add this to the $35,000 you’re already underwater, and you’re looking at bringing $60,000+ to closing. For most people, this simply isn’t possible.
Real estate agents won’t tell you this upfront because they can’t make money unless you list with them. But the math doesn’t lie — traditional sales often make bad situations worse.
The Problems with “Traditional” Solutions
Short Sales: A 6-Month Nightmare
Most agents will suggest a short sale, where you ask the bank to accept less than you owe. Here’s what they don’t tell you:
- Average timeline: 4-8 months (sometimes over a year)
- Success rate: Only 60-70% of short sales actually close
- Credit damage: 85-160 point drop in your credit score
- Tax consequences: Forgiven debt counts as income
- No guarantee: Banks reject deals all the time, even after months of work
One homeowner we helped spent 11 months trying to short sale her house. The bank rejected three different offers, and she finally gave up when facing foreclosure anyway.
Deed in Lieu: Giving Up for Nothing
This means handing your house back to the bank. You get:
- Massive credit damage (similar to foreclosure)
- No money in your pocket
- Possible deficiency judgment for the remaining debt
- Potential tax bills on forgiven debt
Essentially, you’re doing the bank’s work for them and getting nothing in return.
The Solution Most Homeowners Never Hear About
There’s a third option that real estate agents don’t know about and banks don’t want you to discover: Creative financing through subject-to arrangements.
This approach has helped thousands of homeowners walk away from underwater mortgages without paying a single dollar out of pocket.
How Creative Financing Works
Instead of trying to sell your house the traditional way, you transfer ownership to an investor who takes over your mortgage payments. Here’s the process:
- We evaluate your situation (usually takes 24-48 hours)
- You transfer the deed to us through a title company
- We take over your mortgage payments immediately
- You walk away with no money out of pocket and no more payments
Real Results from Real People
Sarah from Lakewood: Owed $340,000 on a house worth $295,000. Facing divorce and couldn’t afford the $55,000+ to sell traditionally. We closed in 12 days, and she moved on with her life.
Mike from Aurora: Behind three months on payments, foreclosure notice already filed. Traditional sale would have taken too long. We caught up his payments and closed in 8 days.
The Johnson Family: Transferred to California for work, couldn’t sell their Denver house. Owed $285,000 on a house worth $265,000. We handled everything remotely — they never had to come back to Colorado.
Why This Works When Other Solutions Fail
Speed That Matters
- Traditional sale: 60-90 days (if you’re lucky)
- Short sale: 4-8 months with no guarantee
- Creative financing: 7-14 days
No Money Required
Unlike traditional sales, you don’t need:
- Cash for repairs
- Money for staging
- Funds for commissions
- Closing cost cash
Immediate Relief
Your mortgage payment stops the day we close. No more lying awake at night worrying about how you’ll make next month’s payment.
Minimal Credit Impact
While not perfect, this approach typically results in far less credit damage than foreclosure or even short sales.
What About the Mortgage Staying in My Name?
This is the most common concern homeowners have. Here’s how we address it:
Professional Servicing: We use third-party companies that handle all payments. You get email confirmations that payments are made on time, every time.
Legal Protection: Everything is documented through attorneys and title companies. You’re not just trusting a handshake deal.
Track Record: We’ve been doing this for years with zero payment defaults. Our reputation depends on making every payment on time.
Insurance Coverage: The property is fully insured from day one, protecting everyone involved.
Is This Right for Your Situation?
Creative financing works best when you:
- Owe more than your house is worth
- Need to move quickly (job transfer, foreclosure, etc.)
- Don’t have cash to bring to a traditional closing
- Want to minimize credit damage
- Are facing financial hardship or life changes
It might not be right if you:
- Have plenty of time to wait
- Can afford to bring $50,000+ to closing
- Have significant equity in your home
Red Flags to Avoid
Not all investors operate professionally. Watch out for:
- Anyone asking for upfront fees
- Pressure to sign without reviewing documents
- Investors who won’t use title companies or attorneys
- No references or local track record
- Promises that sound unrealistic
Take Action Before It’s Too Late
Every month you wait costs you more money in payments on a house you can’t afford to keep. Here’s what to do right now:
- Stop throwing good money after bad — Don’t keep making payments on a house you’ll never be able to sell profitably
- Get a professional evaluation — Find out exactly what your options are
- Compare approaches — See how creative financing stacks up against traditional methods
- Move quickly — The best solutions require decisive action
You Don’t Have to Choose Between Bad and Worse
Being underwater on your mortgage isn’t the end of the world. While traditional real estate solutions often make your situation worse, creative financing can get you out clean.
The families we help aren’t looking for a perfect solution — they need a practical one. They need to move on with their lives without financial catastrophe.
If you’re tired of being trapped by a house you can’t afford to keep or sell, it’s time to explore options that actually work in the real world.
SellFastDenver.com exists for homeowners who need to sell, not just those who want to. Our mission is to bring speed, certainty, and flexibility to people facing tough situations like foreclosure, divorce, probate, relocation, and overwhelming repairs.
By combining local knowledge with creative finance strategies, we provide clear options and fast results — so you can stop worrying and start fresh.
Learn more at www.SellFastDenver.com.