If circumstances force you to sell your house due to foreclosure instead of waiting out a market turnaround for values to rise, you may feel backed into a corner.
Being upside down on your mortgage—owing more than your home is worth—can feel like quicksand. With 3.4 % of Wisconsin mortgages now “seriously underwater” (one in every 29 loans) attomdata.com and Milwaukee prices swinging 11 % year-over-year redfin.com, knowing your exit routes is essential. Below are four practical moves that protect your credit, your sanity, and, when possible, your wallet.
Get a Reality Check on Your Equity Gap
Why it matters: Decisions without solid numbers lead to expensive detours.
- Confirm today’s payoff. Call your servicer for a current payoff quote that includes interest to your target sale date.
- Pin down market value. Pair a licensed appraisal with recent Milwaukee comparables: the median listing price is $230 K realtor.com, while the median sale price sits at $239 K redfin.com.
- Calculate the gap. If you’re $20 K or more underwater, jump to strategies 3 or 4.
Restructure the Loan Instead of Leaving
If your income is steady and you want to keep the house, talk to the lender about:
- Rate-and-term refinance—hard with negative equity, but FHA Streamline or VA IRRRL programs waive appraisals for qualified loans.
- Loan modification—extends the term or drops the rate; the Q1 2025 national delinquency rate is 4.04 % nationalmortgageprofessional.com, so banks are listening.
- Principal forbearance—rare, but some servicers tuck part of the balance into a balloon due at sale.
Heads-up: Every reschedule pings your credit and may reset amortization. Run the math first.
Turn the Home Into a Cash-Flow Asset
Milwaukee’s average rent is $1,403 (May 2025) zillow.com. Compare that to your PITI payment:
- Positive cash flow? Lease it out while you ride the market. Even modest equity growth (3–5 % annually) can erase today’s deficit within five years.
- Negative cash flow? Consider renting rooms or using short-term platforms to bridge the gap.
Unique angle: “Rent-to-wait” coupled with a fixed buy-out—Kustom Property Solutions occasionally structures lease-option offers where we handle property management and maintenance, pay you a set monthly amount, then buy at an agreed price once values recover. Ask how it works.
Short Sale vs. Direct Cash Offer
| Feature | Short Sale (MLS) | Direct Cash Sale → Kustom Property Solutions |
|---|---|---|
| Timeline | 90–180 days | 7–21 days |
| Showings/repairs | Required to please buyers | None—sold as-is |
| Commissions | 5–6 % (usually paid from proceeds) | $0 |
| Bank approval | Mandatory, often multiple rounds | We negotiate payoff for you |
| Deficiency judgment risk | Yes, unless lender waives | We push for a written waiver |
| Stress level | 🔴🔴🔴 | 🟢 |
Why the Waiver Matters in Wisconsin
Under Wis. Stat. § 846.10, lenders may waive the right to chase you for the shortfall, often in exchange for a shorter redemption period docs.legis.wisconsin.gov. Our legal team leans on this clause so you walk away debt-free—and faster.
Case Study: Example
Payoff: $278 K • As-is value: $255 K • Gap: $23 K
Closed in 12 days, secured a deficiency waiver, and even arranged $4,000 in relocation assistance for the seller. No listings, no strangers touring the home.
Key Takeaways
- Know your numbers before acting; Milwaukee values vary block by block.
- Restructure or rent if you can stomach a longer road to equity.
- Wisconsin law lets savvy sellers erase deficiencies—but only if you negotiate smartly.
- Kustom Property Solutions delivers a stress-free, cash exit that can close in three weeks or less, with zero fees or repairs.
Ready to Get Right-Side Up?
Call (262) 432-1760 or fill out our form. We’ll send a written cash offer within 24 hours, handle the bank, and close on your timeline—so you can move forward without the weight of an upside-down mortgage.