How to Sell a Home With Negative Equity in Austin (And Still Walk Away With Cash)
If you owe more than your home is worth, selling can feel impossible. Most paths require your lender’s approval, and the “right” move depends on your finances and urgency. The good news: there are options—and our Equity Protection Program has helped hundreds of Austin-area homeowners sell even with negative equity and leave the closing table with cash.
What “negative equity” means You owe more on your mortgage than your home’s current market value. Traditional sales often force you to bring money to closing or risk credit damage if you can’t. I recently wrote an article about how falling home prices in Austin are effecting sellers, check it out here: Read Article
Your main options (and how they really work)
Pay the difference out of pocket
- How it works: Sell at market value, bring cash to cover the gap between sale price and your loan payoff.
- Impact: No credit hit.
- Best for: Sellers with savings who must move now.
Request a short sale
- How it works: You document hardship; your lender approves a sale below your payoff and may forgive the deficiency.
- Impact: Credit negative, though less severe than foreclosure; in some states the lender can still pursue the balance.
- Best for: Sellers who can’t afford payments and can prove hardship.
Deed in lieu of foreclosure
- How it works: You transfer the deed to the lender in exchange for debt relief.
- Impact: Credit negative, typically milder than foreclosure; relocation help is sometimes available.
- Best for: When a short sale isn’t possible and you must avoid foreclosure.
Wait and build equity
- How it works: Stay put, keep paying, make extra principal payments, and/or improve the home while the market recovers.
- Impact: Works only if the payment is affordable and your timeline is flexible.
- Best for: Owners who can wait.
Rent it out
- How it works: Lease the property and use rent to cover mortgage, taxes, insurance, and upkeep.
- Impact: Risk of vacancies and negative cash flow; you become a landlord.
- Best for: Owners who can carry a second residence and manage risk.
Where Buyers Group of Austin fits: our Equity Protection Program We want to buy your home—and many times we can pay your asking price. Because we’re local, long-term investors, we can often structure purchases that solve negative-equity math without showings, repairs, or months of uncertainty. We’ve helped hundreds of Austin-area homeowners close cleanly and leave with money in hand, even when they started out upside down.
What we offer
- Many times we can meet your asking price (case-by-case)
- We often cover standard seller closing costs
- As-is sale: no repairs, no open houses, no weekend showings
- Close on your timeline—often 7–21 days
- Professional, transparent process through a licensed title company
How deals like this come together
- We analyze your payoff, market value, and rental potential.
- If the numbers support it, we structure a purchase that meets your price and nets you cash at closing.
- If that’s not feasible, we’ll lay out alternatives (including how to approach your lender) and help you choose the cleanest path forward.
A quick decision guide
- Have cash and must move now? Consider paying the gap—or talk to us to see if our offer beats that outlay.
- Can’t afford payments and can document hardship? Short sale may fit—ask us to help you compare timelines and net outcomes.
- Flexible timeline and affordable payment? Waiting or renting could work—ask us to model the numbers.
- Want certainty, speed, and simplicity? Request an Equity Protection offer from our team.
First steps to take today
- Get your loan payoff from your lender (good for a limited time).
- Gather basics: address, mortgage type, monthly payment, HOA dues, recent upgrades.
- Contact us for a no-pressure review and a written offer, often same day.
Negative equity doesn’t have to define your next chapter. Whether we buy your home or simply help you choose the smartest route, our goal is the same: protect your cash, protect your timeline, and reduce stress.
Next steps
- Schedule a free consult: Book Now
- Call/text me: 512-943-2813
- Email me: buyersgrouppartner@gmail.com
- Service areas: Austin, Round Rock, Pflugerville, Cedar Park, Leander, Buda, Kyle, and nearby
*Important notes: Every property and loan is unique. Some solutions require lender approval. All offers are case-dependent and subject to standard due diligence. This article is for general education, not financial or legal advice. Equal Housing Opportunity. All closings are completed with a licensed title company.
By Amber Clary, Founding Principal at Buyers Group of Austin and ClearPath Homebuyers