Humans tend to think that they’re due for a run of good luck if only they hold on and keep trying. It’s similar to the mentality a gambler gets when he’s losing at the table, just one hand could turn everything around. But, the smart card player knows when to get up from the table. The same can be said when it’s time to sell your house at a loss. It’s perfectly understandable why you’d want to wait for better days to sell, but staying paralyzed on the issue is going to cost you money every month you push off the decision on what you want to do.
In a bad real estate market, sometimes you have little choice to do anything but sell your house at a loss. Simply put, you paid more money than the house is currently worth, or are able to get in a tight real estate market. The good news is that there are many ways to minimize the pain and find a buyer quickly to help you untangle your current financial situation.
The best thing you can do when you find that your house is no longer worth what you paid for is to see if you qualify for any refinancing of your home loan. Many banks are able to give you favorable rates as a way to manage your debt load until you’re able to unload the house and pay off the mortgage.
Examine your situation and needs. Depending on your situation, you have many avenues when it comes to selling your house at a loss. The first is to contact your local realtor and ask them questions about the neighborhood and what they might be able to do for you. Realtors know the local market better than anyone else, and local real estate news about your particular neighborhood can be hard to come by online.
Make sure you understand what money you would have to refund to your institution and pay after selling your house at a loss. Several years ago, the Federal Government offered an $8,000 tax credit for new homebuyers. If you took advantage of that credit, you may have to repay the difference depending on how long you stayed in your home. You’ll want to contact the IRS and ask them for a schedule of “Repayment Triggers” to get more information on that.
See if you are qualified for a short sale. Short sales are great instruments for those people who need to move their homes immediately. Unfortunately, simply owing more money on your home isn’t always enough to qualify, but that doesn’t mean you shouldn’t look into it. Several different factors affect the decision on whether or not a home is eligible for a short sale and it is a very handy instrument for those who need to get out of debt fast. Be warned, by going through a short sale, you will have to wait a couple of years until you will be able to qualify for another mortgage. Short sales do affect your credit score, so short sales should only be used if you understand the consequences that come along with it. Weigh the pros and cons of each path and see which will be more expensive for you and your life plan.
Selling your house at a loss can be a complicated process, but with a well-qualified Real Estate agent at your side and people you trust handling the finances, you can successfully navigate it and save yourself more money than you would have otherwise. If you need an expert opinion – call Mark at 404.886.8789 and get your FREE / NO OBLIGATION assessment of your situation.