Three paths. Three very different outcomes. This page shows you the real math behind each option so you can walk into any conversation — with an investor, an agent, or your servicer — knowing exactly where you stand.
On a home worth $350,000 with $180,000 owed, a predatory cash offer at 65% of market value nets you approximately $47,500. A traditional agent-assisted sale at market value nets approximately $143,750. The difference — nearly $100,000 — is real equity that belongs to you. This page shows exactly how that math works so you can evaluate any offer with the same information the investor already has.
Every distressed homeowner has at least three paths available. The one you choose — or the one you're pressured into — determines how much of your equity you walk away with.
Quick and certain, but deeply discounted. The investor buys your problem — and your equity — at a steep price. Closes in 7–21 days. No repairs, no showings, no agent. The convenience is real. So is the discount.
Takes 30–60 days in most active markets. Requires light preparation and showings. Recovers the most equity of any sale option — typically 85–95% of market value after all costs. The right choice when time allows.
Loss mitigation: loan modification, repayment plan, or forbearance. Avoids selling entirely and preserves all of your equity. Requires income to restructure. Always worth exploring first before any sale.
Investors purchase public county recorder data immediately after a Notice of Default or Lis Pendens is filed. They know your estimated market value, your recorded mortgage balance, and your approximate equity before they ever contact you. The letter is not random. It is a calculated offer built on your public records.
Here is the exact math behind a typical predatory cash offer — exposed:
| Your home's market value (ARV) | $350,000 |
| Investor offer at 65% of ARV | $227,500 |
| Minus your mortgage payoff | − $180,000 |
| Your net (what you keep) | $47,500 |
Note: Offers vary. Some investors offer 60–70% of ARV. Some deduct an estimated repair budget on top of the discount, further reducing your net. Always ask for the calculation in writing.
A traditional market sale takes more time, but the math is substantially better. Here is what the same home nets through a licensed agent:
| Sale price at market value | $350,000 |
| Agent commission (5.5%, both sides) | − $19,250 |
| Seller closing costs (~2%: title, transfer taxes, prorations) | − $7,000 |
| Total transaction costs | − $26,250 |
| Minus mortgage payoff | − $180,000 |
| Your net (what you keep) | $143,750 |
Timeline reality check — is there enough time?
If equity exists and income exists to restructure the loan, loss mitigation keeps the entire $143,750+ in home equity in place — rather than liquidating it through any sale at all. A loan modification, repayment plan, or forbearance may allow you to resolve the default and keep your home.
This option is always worth exploring first, before considering any sale. Under federal RESPA rules (12 C.F.R. §1024.41), your servicer cannot proceed to foreclosure while a complete loss mitigation application is under active review. Filing that application buys time and preserves every option.
Full loss mitigation guide — loan modifications, repayment plans, forbearance →
This is the difference between what you net from a predatory cash offer and what you net from a traditional agent sale — on the same home, with the same mortgage.
This money does not disappear because foreclosure feels urgent. It is real equity that was built through years of payments, market appreciation, and ownership. The only way it disappears is if you sign it away under pressure.
The investor who sent you that letter already knows your equity. They pulled your public records — county recorder data, mortgage instruments, NOD filings — before writing to you. The offer is calculated. You deserve to have the same calculation in front of you before you respond.
You do not need a spreadsheet or a financial professional to run these numbers. Six steps, and you will know exactly where you stand:
Under federal RESPA rules (12 C.F.R. §1024.41), your servicer cannot proceed to foreclosure while a complete loss mitigation application is under review. A HUD-approved counselor can help you file — free of charge. Call 1-800-569-4287. Free, nationwide, most languages.
The cash buyer's pitch is honest about some things: there truly is no commission and no repair obligation. Those savings are real. Here is an honest accounting of them:
| Agent commission saved (5.5% of $350K) | + $19,250 |
| Repair costs avoided (estimated range) | + $20,000 – $40,000 |
| Total convenience savings | $39,000 – $59,000 |
The convenience savings are real. They represent 30–50 cents of every dollar you give up in equity. The pitch works because those savings are the part you can see — the commission you won't pay, the repairs you won't make. The part you can't see without this math is the $96,000 gap.
If the home needs $60,000 in repairs and you would net only $40,000 more from a traditional sale, the cash offer may be rational. Run the numbers before assuming either direction. The math protects you.
HomeLeafs pulls live county recorder data to show you your recorded mortgage balance, estimated market value, and equity position — free, no account required. It's the same data the investor used to write that letter.
Get Your Free Equity Report No signup. No agent. Just your address.A seller net sheet is a calculation showing your home's sale price minus all costs — agent commissions, closing costs, mortgage payoff, and any other deductions — to arrive at what you actually keep from the sale. It is the single most important number when evaluating any offer, because the offer price is not what you net. A home sold for $350,000 with 7% in costs and $180,000 owed nets $143,750 — not $350,000. Every offer you receive should be evaluated through a net sheet, not through its headline price.
Typically 15–30% less in net proceeds, but the exact number depends on your equity position, the investor's specific offer percentage, and local market conditions. On a $350,000 home with $180,000 owed, the gap in this example is $96,250 — nearly $100,000. The gap is larger when you have significant equity, because investors discount against market value regardless of what you owe. The more equity you have, the more you stand to lose from a below-market offer.
Sellers typically pay 1–3% of the sale price in closing costs, separate from agent commission. These include title insurance (owner's policy), transfer taxes, documentary stamp taxes (required in Florida), attorney fees where applicable, prorations for property taxes and HOA dues, and any outstanding liens that must be cleared at closing. On a $350,000 sale, seller closing costs typically run $5,250–$10,500. Add agent commission of 5–6% and total seller costs reach roughly 7–9% of sale price. A good agent can provide an itemized estimate before you list.
If you owe more than your home is worth — called being underwater or having negative equity — a traditional sale cannot fully pay off your mortgage without lender approval. This puts you in short sale or deed-in-lieu territory. A short sale requires your lender to agree to accept less than the full payoff; the deficiency (the difference between what you owe and what the home sells for) may be forgiven or pursued, depending on your state and your lender. A deed-in-lieu means you voluntarily transfer the property to the lender. Both options avoid a formal foreclosure record but require lender cooperation and carry their own credit consequences. A HUD-approved housing counselor can evaluate your specific situation for free — call 1-800-569-4287.
Last reviewed: May 2026