Many homeowners are currently facing this difficult reality. The process of listing your house for sale is a big decision to make in itself; most people are not typically prepared if it actually doesn’t sell. Realtors are doing a much better job of educating their clients about the market conditions and the possibilities. What options are there for homeowners in this situation?
If your current mortgage is paid off, selling on a contract for deed is very appealing for buyers and can also have a great benefit to the seller as well. You the homeowner basically acts as the bank, qualify your buyer, while you both come to a mutual agreement on terms and price. You as the bank get to collect the down payment and the interest that is paid.
Most mortgage notes have a due on sale clause which means that if title to the property is transferred, and the lender who currently holds the mortgage note catches this, they can call the entire balance of the mortgage due. This can make for a difficult situation if there are liens against a property that contain this due on sale clause. It is best to not exercise this option unless there are no liens against the property.
It is better to start looking at this scenario from a financial perspective, if it is really necessary for you to move. The reason being is emotions can really cloud judgment and keep you from opening yourself up to different options. Renting your home out has great benefits. This can work very well if your mortgage payment is low and there is an opportunity for cash flow. If this is what you choose to do, screening your potential renters is the most important part of the process. There are plenty of good renters in the world, there is just more opinions shared about the bad ones. As long as you perform your due diligence in screening this can be a very good option.
Also in regards to renting, there is the possibility of doing a rent to own option. Someone may want to purchase your home, but be unable to qualify for traditional financing. If this is the case you can get a down payment from them, and monthly rent. However the contract is agreed upon if it works for both parties great. This can be written up on a regular lease with an addendum including the terms of the lease option agreement and timeframe. While paying the costs of the residential area, the transportation services should be considered. The Pasir Ris Central price should be under the budget of the buyer otherwise, residence can be done on rent.
If your house doesn’t sell and the mortgage is equal or more than the property was listed for there is always the possibility of doing a short sale. This is when the lender or mortgage note holder will agree to take less money than what the balance is. Goes with the saying a dollar today is worth more than a dollar tomorrow. Banks are much more willing to negotiate and take less money today, than face the possibility of going through the expense of foreclosure and legal costs included. This is becoming more and more common with the market decline. All lenders have different regulations regarding short sale. It is best to talk with them first and find a Realtor who has some experience dealing with short sales.