For many of us, the global financial crisis has had a negative impact on our day to day lives. Whether you’ve lost your job, had unexpected expenses, or have had a lender increase interest rates on you, we all have a reason to try to get some cash quickly.
Your primary residence can serve you two ways: It can be your biggest asset, or it can be your biggest liability. If it’s an asset to you, meaning you have some equity in it (it’s worth more than you owe on it) then you have a potential cash cow on your hands. If your house is a liability to you or you are underwater (you owe more than it’s worth) then there’s good reason to be worried.
Either way, selling your house quickly can be a big benefit to you financially. Here are the top three reasons to sell your house quickly.
Pay Off Higher Interest Rate Debt
If you’ve got any other debt, like unsecured credit card debt, education loans or medical bills, they are probably costing you an arm and a leg in interest payments. Maybe you are being harassed by debt collectors.
One of the best places to get cash to pay off higher interest rate loans is the equity in your home. Sell your house quickly at a profit and using the cash to pay off those loans. It only makes good financial sense to get rid of higher interest rate debt quickly before most of the payments are purely interest.
The peace of mind you’ll get from not having to deal with debt collectors again is priceless.
Save Your Profits in a Sinking Real Estate Market
For most people, their house is not only a place to call home, but it can also be a great investment. In a down real estate market like we are currently in, it’s never a bad idea to sell your house quickly and preserve your gains.
Once you have cashed out, you can use the cash for whatever you need, like taking a holiday or saving it for retirement. It’s better not to wait until your house is worth less than what you currently owe or less than what you paid for it.
More than ever before in history, foreclosures are increasing at a record pace. Foreclosure can leave a long-lasting mark on your credit history and will have a negative impact on your career as well as many employers look at your credit history these days to help make the decision on whether to hire you or not.
If you are in a situation where you are behind on your house payments and might be facing the prospect of a foreclosure, it makes sense to try to sell your house right away to stop your losses.
The best scenario would be to sell your house for what your principal balance is on your loan. If that’s not possible, then try to sell the house quickly for as much as you can and work with your lender to hammer out a payment plan for the remainder of the shortfall.
Either way, unloading the house before the bank forecloses on you is the best way to deal with it. You’ll be free from the burden for the mortgage and can avoid the negative mark on your credit history.
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