Selling your home can be an emotional process especially if you have grown up in it or raised your own children there. Most people only envisage selling their home if they decide to relocate to another area or purchase a larger property, but there are other less desirable reasons for having to sell your home. If you find yourself in financial difficulties, you may have to sell your house to avoid losing it to the bank. You may also find that the upkeep and maintenance of your home is just too much for you to stay on top of. Although it may be heart breaking, there are some situations where selling your home makes financial sense.
When it comes time to divide up the assets during a divorce, a common bone of contention is who gets to keep the house. If there are children involved, then the main caregiver usually stays in the house, but there are many instances where this is just not possible. A family home may be too expensive for one person to maintain or both parties may wish to start afresh in a new property. If you cannot reach an agreement over the property or both you and your former partner plan to relocate, then selling the house and splitting the money is usually the best option. Having to sell your home immediately after divorce can be emotionally stressful, but it is better than fighting over an empty property and dragging the matter through an expensive court proceeding.
The housing crisis has seen many homeowners’ mortgage payments suddenly skyrocket, and some people are finding that the majority of their income is being eaten up by monthly payments. Others may have been a little ambitious when calculating the size of the home they could afford and are now struggling to stay on top of their mortgage. Many people are unaware that so-called ‘unsecured debts’ for items such as credit cards or overdrafts can sometimes result in the lender applying to the court for a charging order to attach these debts to the borrower’s home. If you cannot see a way to pay off your debts, then selling your home and using the money to pay what you owe may be the most sensible option.
Escalating Maintenance Fees
Owning your own home can be an expensive endeavour, and people are often unprepared for just how much they will have to fork out each month. Property tax, insurance, maintenance and general upkeep can leave a huge hole in your finances, and the larger the property the more you will have to spend. A worn out boiler or crumbling home exterior can often cost thousands of pounds in repair bills, and unexpected bills tend to have a habit of cropping up at the worst possible moment. If you cannot afford the fees for your property, it may be a good idea to downsize. You can check out other properties at AlanDeMaid.co.uk to see what sort of properties may be better suited to your budget.
Serious Structural Problems
If you suddenly discover a huge crack in the foundation of your home or your roof suddenly collapses, you may not have the available funds to make your property safe for living. Another scenario could be you suddenly inherit a property in a bad state of disrepair and do not wish to spend thousands on renovations. In these cases, selling the property makes good financial sense and could help you escape a massive burden and headache. However, it is important to remember that you must declare all problems with the property to any potential buyers when completing the property information form. If you fail to mention any serious structural problems or even disputes with the neighbours when negotiating with buyers, you may leave yourself open to a lawsuit once the issues are discovered.
Many people are tempted to try and hang onto their house no matter what their financial situation, but this can often make things worse. If you are forced to sell your home by the court in order to pay off debts, then you will get much less for it than if you were to sell privately. Houses that are repossessed by the bank for failure to keep up with mortgage payments are sold at auction for much less than their actual worth, so you could end up with nothing even if you have previously built up a little equity in your home.
Abigail Frost works in debt management services and encounters plenty of people who are looking for a financial fix. She likes to share her thoughts and tips on financial issues with an online audience and is a regular writer for a number of relevant websites.
Feeling Clever? Join our newsletter!
Subscribe to get the latest from "Clever Dude."