While it’s understood that today’s real estate market is in a terrible state, cool heads must prevail. If you have lost your job and, financially, you are sinking fast because of your mortgage payments there are answers.
The problem is, most people wait far too long before they take action. By then a stressed out homeowner may wish that they had started the process of selling their house months ago. For instance, don’t wait until you have been late or you have completely missed two or three payments before you take action. By waiting too long, you will destroy your credit score and compound your problems.
Don’t let that happen to you. If you suddenly lose a fantastic job that you have had for ten or twenty years, that means that your company is in serious trouble and they will not be calling you back. Companies do not release ten or twenty year veterans unless their situation is desperate.
The day that you do lose your job, you should take a complete inventory of your financial situation. How much available cash do you have? What other streams of income do you have? How much income would it take for you to keep your ship afloat for a while?
From the moment that you lose your job, your life will take drastic turns. You must understand that drastic times require drastic actions on your part. While it’s true that losing your home is not something that you would rejoice in, ruining your credit would be even more devastating. As long as your good credit is in place you will still be able to maneuver through your life. Hanging on to a house that destroys your credit is a double whammy that you should not allow to happen.
Instead, accept the inevitable sooner than later. Maybe you can hang in there, while searching for a new job for a while, but never wait too long. Before you totally run out of resources, take action.
The easiest way to save your credit would be for you to rent your house to someone else. Keep in mind that many people have been affected by this economy and they cannot afford to buy a house either. That means that it has become much easier to rent a house in today’s market because the rental market has become larger than the buying market.
Many times you can rent your house for more that your monthly payment and you can actually make a small profit while you rent a smaller house for you and your family. Even if you cannot make a profit maybe you can at least minimize your monthly losses.
Here is an example; let’s say that your current house payment is $2,000 per month and you decide to rent your house to someone for $2,200 per month. Next, you find a smaller house that you can rent for you and your family and the rent is $1,500 per month.
By taking these steps, you have become a landlord and lowered your monthly expenses by $700 per month. The most important thing you have accomplished is that you have saved your credit and by doing so you have saved your future.
One of the first things a homeowner, who is in financial trouble, thinks of is to list their house with a real estate agent. That is not a good choice. The real estate market is in terrible shape and selling a home in today’s market is not an easy feat. Today’s market is flooded with vacant houses and these houses are selling for much less than is owed against them.
The next thing to think about, when it comes to listing with a real estate agent, is that an agent will have control of your house for up to six months. Even if you have the revenue to hang on that long, there is no guarantee that your house will sell. By that time it may be too late for you.
You must think of you and your family. What is the best thing for you? While leaving your home, for a smaller house, is not the most desirable thought it is much better than destroying your credit by trying to hang on to your house too long.
Eat your pride and rent your house, to someone else, in order to increase your chances for the future.
Find more information at http://www.howtosellmyhousealone.com