Right now there is a common problem going on with people who are trying to buy a new and better house. They can’t get rid of their old house. I talk to many families every week that want to take advantage of the deals that are happening in this market, but they cant sell their old house and so they are forced to wait. So when you are faced with this, what are your options.
The first option is to move anyway and hope that you sell your old house quickly. But in that situation you may be forced to pay two mortgages. If you can afford to pay both mortgages then by all means this is something that you can do, but most people don’t want to get in this situation. Also, the bank may not approve your financing since this will drastically affect your income.
The second option is to consider renting out your old house. When you rent out the old house you can often cover the mortgage payment with the rent and that rental income will offset the expense of the old house mortgage making it easier for you to get approved for financing for the new house. The downside to rental is the fact that you have now become a landlord. Unless you have previous landlord experience or the desire to become a landlord, it is not an attractive solution for most. You will have to deal with making repairs on the old house when necessary. You will also have to deal with tenants that can sometimes be late on rental payments or who stop paying rent altogether. This can hurt your monthly income because you will unexpectedly have to cover the mortgage payment that their rent was suppose to cover.
Another option, and to me it’s the best option, is to sell your house creatively. I think this works because even though you don’t completely rid yourself of the old house you can still get the advantages of renting the old house out without all the headaches. You can also get a fair price for your house and you wont be forced to sell the house at a really low market price just to get it sold. The other thing is that if you are uncomfortable with setting up a creative sale you can always talk to your attorney and have them help you or you can deal with our company and we can possibly complete the transaction for you. Creative sales are not new, they were used heavily in the 80’s when interest rates were really high. While some people are afraid of this technique you have to consider doing what works when you want to accomplish the goal of selling your house.
Arthur Veal is owner of We buy Houses Home Services. We Buy Houses home Services is a real estate investment company that specializes in renting to own and selling on terms. They have helped hundreds of families sell their house on terms. They also specialize in buying houses on terms through their site at http://www.sellonterms.com.