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Selling Your Home to Get Out of Debt

Posted on: October 28th, 2019 by ,

Times can get tough money wise. Even if you save, something could happen that might leave you broke. And It’s not unusual to consider selling your home to get out of debt. 


But is it the right decision for you? 


It all depends on how serious your financial situation is. 


How much debt do you owe? Are you unable to cover your basic expenses? How long have you been struggling financially? Are you considering selling your home so you can relocate quickly for another job


We’ll start by looking at the reasons why you shouldn’t rush into selling your house and then look at circumstances when it would make more sense.

Selling Your House to Escape Debt May Not Always Make the Most Sense

Most people run into difficult life circumstances that may prevent them from paying bills from time to time. But you shouldn’t rush into selling your house if:


#1 You’re behind just a couple of months in mortgage and/or property taxes. 


Most lenders actually have grace periods so that homeowners have more time to pay their mortgage without penalty. You can actually miss four payments (about 120 days) before you’re in real risk of foreclosure. If you’re unable to pay your mortgage for just two to three months, don’t panic if you have a viable solution to pay it off in a few months. When in doubt, call your lender to go over your options.


#2 You have emergency savings or other resources that can cover your mortgage and other basic needs for at least six months. 


According to Randstad, it takes an average of five months to find another job.  If you’re unemployed, give yourself at least two or three months to gather job leads. By two or three months, you’ll be able to feel out the job market and see if you have any promising opportunities. If you’re not getting any leads or the job market is slow, you may want to consider selling or renting out your home. 

When It Makes Sense to Sell Your House to Get Out of Debt


Some life circumstances will leave you no other choice but to sell your home to get out of debt. Here are some of the reasons why it might make more sense to sell:


#1 You can no longer pay your mortgage and don’t foresee a viable solution. 


If you’ve exhausted all possibilities to pay your mortgage and think you’ll run out of cash after three months, you may want to go ahead and put your house on the market.


#2 You’re four months past due in paying your mortgage and facing foreclosure. 


When the threat of foreclosure nears, you should consider how to get rid of your house quickly, so it won’t ruin your credit. Selling your home through a property investor may be the quickest solution.


#3  If you have a more affordable option for living that will reduce your financial stress, then sell. 


Selling your home and/or downsizing can help reduce your debt and help you live more comfortably. If you don’t need a big home, why struggle with the bigger mortgage?


#4 You’re selling an extra property that will alleviate you from additional mortgages, property tax, and maintenance costs. 


Having additional properties can be stressful and expensive. If your rental property or any additional property is costing you more money than you can handle, you should probably sell. Selling an extra home may help you make a profit that will help pay down other debt.


#5. Your property taxes and HOA fees have accumulated to a point to where your property is at risk. 


Liens attached to your home can lead to foreclosure. Believe it or not, you can be forced into foreclosure in Georgia for non-payment of HOA dues totaling $2,000 or more.


#6. You’ve accumulated debt that will be difficult to pay down due to high interest rates. 


Many people try to stay afloat by paying the minimum amount on their loans and credit cards. Paying the minimum for too long, however, can ultimately cause your interest fees to add up and keep you under water. If your credit is at risk and you have no other options to pay down debt, you may want to consider selling your home. 

How Do I Sell My House Quickly to Reduce Debt and Avoid Possible Foreclosure? 

The fastest way to sell your property is likely going to be through a property investor, like Arbor View. We provide cash offers to homeowners and can close in a matter of days, so you can potentially avoid foreclosing. Another bonus is that there are no realtor commissions involved when selling to Arbor View. 


Selling your home to us instead of going through a realtor may also be the best route if you have a lot of repairs to make that you aren’t able to afford. Arbor View property investors will buy your house as-is, so you’ll have less to worry about. 


Are You Ready to Sell? Get a No-Obligation, Quick Cash Offer from Arbor View Property Investors in Atlanta by contacting us here.


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