Thinking of selling your home and moving on? Having a hard time paying off your loans and plans to sell your home for a profit? That may be possible but not an easy task. Selling your property while in mortgage might not have the outcome that you’re expecting.
The first thing you need to know is how much your current mortgage payoff is. If you’re still paying your loan balance, it is a necessity to know how much your home would sell. Will it be enough to pay for your current loan balance or will you have enough profit to get yourself a Charlotte low down payment mortgage when you decide to move out? If you don’t know the answer to these questions, get help from real estate listing representative.
Selling your Home for Profit
There’s a good chance that you may walk off with a profit from selling your property. Work with your real estate agent and see if the homes in your neighborhood have increased in property value. There will always be a time when property value increases. You have to know when. If it is necessary for you to have your home sold as soon as possible, you can go for a short sale.
A short sale is when the mortgage owner sells the property lower than what was owed. This is a possibility, but it depends solely on the lender if they would agree to have it sold for less than what was agreed and call it even. The good side of this method is that the mortgage owner prevents foreclosure. When a property is in foreclosure status, the lender may auction the property to the highest bidder and the loan paid off goes back to the default. The lender may also sue the mortgage owner for the remaining balance on the loan. The bad side is that they would get less from what they already paid off.
Settling your Loan Debt and Protect Your Credit Score
If you have problems paying off a loan and selling your house isn’t enough, you can try to work with the lender if they would agree to a promissory note. This allows you to pay off your debt through installments over a few years depending on what was agreed upon. Although this isn’t the most popular and most lenders doesn’t always agree to this method but it is worth the try, and it could save your credit standing.
Lastly, if you can’t find anything that would reach the loan settlement amount and the mortgage lenders will not agree to anything you’ve come up with, you can file for bankruptcy. This is the last resort as it would drop your credit rating to a devastating low. Filing bankruptcy can discharge you of any debt and will prevent creditors from suing or taking any action. The downside of this is that you won’t be able to secure a loan for a very long time.
If you’re looking for mortgage lenders that can provide you a Charlotte low down payment mortgage, you can afford, contact AmeriSouth at (704) 845-9400.