“I don’t get it. If the person is not upside-down (still has equity) and plan to sell below market anyway. Why does she need to borrow money?”
She’s probably thinking: I’m already behind on my mortgage payment. So, I need some cash to stave off the lender & buy myself some time to put the property on the market & sell it quickly.
The problem is: most people over-estimate the values of their properties by a large margin. So, even when they list their properties at “under-market prices”, it’s still overpriced. And they will keep chasing the market down without ever catching up to the market price.
