The recent flooding of homes on the market, coupled with a recession and low buyer confidence, means property is not selling the way it was just a few years ago. In times like these, it is best to know how to cut your losses -- and how to gain from the situation by learning when to stay in the market and when to get out.
Knowing When To Get Out Or Stay In The Real Estate Market -- Talk To Your Lender
If you have an adjustable rate mortgage and cannot make the payments, or are facing prepayment penalties, you definitely need to talk to your lender. Some people are facing conflicting statements from loan modification representatives saying that they do not need to pay their loans. Call your lender, find the loan modification department and talk only to them so you figure out what is going on.
In this case, there is no room to negotiate. Lenders do not usually accept partial payments, although they will work with you to come up with a solution. In the meantime, put aside the money you would spend on a loan in a separate bank account to help pay loans later and keep your home from foreclosure.
Knowing Your Best Move In The Real Estate Market -- When To Rent Out Your Home
Although real estate is plentiful at the moment, there are still people out there wanting to sell. After all, it is a buyer's market, and there is a good chance you can get a better deal on a home in another neighborhood. With that in mind, some are turning to renting their property to help pay for a different home.
Renting comes with many risks, so if you are not up for the challenge, stay in your house until the market improves. The problem with renting is that unless you have amazingly respectful and punctual tenants, you will run into monetary issues, like late or missed payments, excuses for not paying and a trashed house. You are risking one of your investments with other individuals, so you must be tough on your tenants.
The Real Estate Market And When To Buy Another Home
The number of foreclosures is on the rise, which means those looking for a bargain will have many more choices. However, buying foreclosed does not always work. Financially troubled homeowners often no longer care about the upkeep of the house, so the majority of foreclosed homes are fixer-uppers in desperate need of work. Lenders are unwilling to invest in the repairs, so be ready to sink money into maintenance and renovations.
No matter what kind of home you want to buy, find a good real estate agent who will search for homes you can afford. Always be sure to hire a third-party home inspector to check out anything you are seriously considering buying. Getting involved in real estate takes some timing and common sense, so if you feel like you absolutely need to sell or buy a new home, go with your instincts despite market conditions.
