The timing may be right for you to sell your house before the values drop even further.
Home Selling Tips – Texas Home Buyers: Smart home sellers know when to sell and when to hold on for a better market to come along. That works out very well for investors and others who don’t have to sell, but are simply wondering if and when it will be good to do so. Some homeowners aren’t quite so lucky, though. They may not have the luxury of waiting and planning to sell when the market recovers.
If you are among those who are seeing difficult times ahead, be careful about how long you wait until you sell your house. Being behind on payments with no reasonable expectation of an improved income in the future would be a good indication that you should get your house on the market as quickly as possible. There’s no point in hanging on and waiting for a miracle job to appear that would get you out of your dilemma.
Avoid getting upside down in your mortgage by selling while you still have equity.
House prices are continuing to drop. This means that the longer you wait to sell, the lower your home value will be. If you still owe quite a bit on your mortgage it will eat into your equity and in some homeowners’ cases, their equity has all but disappeared. At that point you could be upside down in your mortgage, meaning that you owe more than the house is worth.
Having difficulty with making your house payments is not unusual these days as it gets harder to pay for necessities. You may even be among the unfortunate homeowners that has lost a job and can’t find work to replace it. This would signal a definite time to look forward to a new start. Selling your current home may be the best move you can make. You’ll get out from under the large mortgage payments and get a chance to begin the rebuilding process.
If you don’t wait too long and there is hope of finding income in the near future, you may even be able to sell your current home and find another with a smaller mortgage obligation. Selling your current house before you get into hot water with late or missed payments is the best way to keep your credit intact. You’ll have a better chance of a fresh start by protecting your credit and selling your house before the value drops even further. Letting go of your current situation at the right time will put you in a better position for the future.