When You’ve Still Got To Pay The Mortgage, But Your Home Won’t Sell: Here Are Other Options For You To Consider

You’ve got to be realistic. Postponing is a viable and realistic option you should consider. Maybe now isn’t the time to sell; especially if you’re in a buyers market. Perhaps you should take your home off the market and wait for inventory to drop. Selling specially tough because buyers expect bargains. You may lose money if you try to negotiate during the holidays. If you can afford it, its best to wait until the Spring to sell.

If you are selling based on financial needs, it might make sense to take out a home equity loan if you can afford to pay a higher payment monthly. If your existing loan is an adjustable rate mortgage, and a higher interest rate has raised your payment to the extent that you can no longer afford to pay it, you might be able to renegotiate a loan modification plan with your lender.

Some home sellers have no choice but to rent the home. For a variety of reasons, from job promotions to family-related matters, a home seller might be forced to relocate and leave an existing home behind. Even if you can’t receive enough rent to cover your mortgage payments, you will still be earning something.

You should thoroughly screen tenants and hire people if repairs become necessary. Getting a call from a tenant at 10 pm is not ideal. Ask neighbors to keep an eye on your home and to notify you if they suspect problems.

Don’t rule out a short-sale option. If you’ve purchased your home within the past few years, it’s possible that you owe more than your home is worth. Talk to a realtor who specializes in short sales; she may be able to negotiate with your lender to accept less than your mortgage balance.

It’s also worth trying to lease your home. You might talk to your real estate agent about doing a lease option purchase versus an outright sale. Lease options are appealing to borrowers who, for a variety of reasons, might not be in a position to purchase a home through conventional financing. Maybe they can’t decide whether to buy or rent. Make sure your lawyer reviews all documents before you agree to sign.

Lease options give a tenant the opportunity to later purchase your home at a predetermined price. For a tenant who is on the fence about buying a home, it lets them live there while deciding whether to buy. Typically, lease options payments are higher than a regular rent payment, which might eliminate negative cash flow for you.

If your employer is transferring you out of town, you might ask about a guaranteed purchase program. Many employers hire relocation companies that offer buy outs for employees. You might not even know that your employer has a relocation program if you don’t ask. Read: 5 Steps to Sell a House That Won’t Sell.

One thought on “When You’ve Still Got To Pay The Mortgage, But Your Home Won’t Sell: Here Are Other Options For You To Consider

  1. Be veryyy careful who you choose as a tenant(s). In my opinion, you should always trust your gut. Just because someone looks good on paper, doesn’t mean they aren’t nuts. Of course, you can’t ever tell if anyone is at all until you’ve hung around them a little more. But usually when you meet someone you can tell their character. Anyway..be sure to do background checks and get first months and last months rent if you can (on top of security deposit). That’ll ensure that you have tenants who can afford the rent.

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