Trying to sell your home? Has the market value decreased and your upside down? There are options!
Refinance. The is where you pull equity out of your home and refinance. It is credit based, and you're basically starting over with another 30 year mortgage.
Loan modification. Unlike refinance, this is based on your situation rather than credit or payment history. This lowers your monthly mortgage payments, lowers interest rate and can place arrearage at the back of the loan.
Owner Finance. You act as the bank and carry the note for the buyer, either short, mid, or long term. Typically comes with a down payment of 1-20% in addition to the monthly mortgage payments. The buyer typically takes better care of the home than a renter, because they have a vested interest in the property. Although the repairs are the responsibility of the new owners, large claims have to be turned in on the mortgage holders insurance. Research this well because it you need to have key words in your contract such as "buyer waives the right to foreclosure." Without phrases like this, the new owner could stop making payments, causing you to go into foreclosure if you can't make the payments yourself, and they could live there until the foreclosure occurs, which can take up to a year or more. Which will ruin your credit in the process. So, before you jump into offering your home owner financed, do your due diligence to protect yourself.
Renting Out Your Home. I personally, do not like to do this on my primary mortgaged home, but if you are in a pickle, it is an option. You'll have to file an eviction at your cities local courthouse if they don't make their payment. Make sure you get an ample security deposit, usually an equal amount to the monthly rental price. Also, remember to address things like pets or modifications to the home in your rental agreement. If you don't mention it in your contract, then it's okay. My grandmother rented out her home and while she assumed the renters would value the large living room mural and new carpet, they didn't. And both were removed immediately. Checking rental references on applicants and a rental agreement covering what is/not okay are equally important. But even with all this being addressed, you can still get burned by a bad renter. And, even if you win a judgment, you can't enforce and collect it.
Sell it Yourself. You'll save 3 to 7% of your sales price if you sell it yourself. Remember to list on For Sale By Owner websites, Craigslist, Dandy Dime and Penny Saver newspapers. Listing on Craigslist is free, and the Dandy Dime and Penny Saver newspaper are very affordable ads to run, some less than $10! Call your local title, closing company, escrow, or real estate lawyer for more information.
For help doing a loan modification or a cash offer from an investor on your home go to http://redpepper.weebly.com and click on the Save Your Home button.
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