Is Your House Just Not Selling, But You’ve Still Got a Mortgage to Pay? It Might Be Time to Consider the Following Options

Almost nothing is worse than wanting or needing to sell your house, and not being able to. Perhaps you’ve tried every way you can think of to help sell it, and absolutely nothing is working. Well…it might be time to accept the fact that it isn’t selling, and do something to make some sort of income since you still probably have a mortgage to pay. Here are some of the different routes you can take, if selling your home just isn’t working. 

You can always postpone selling: This is a viable and realistic option that you should wholly consider. Maybe now isn’t the time to sell; especially if you’re in a buyers market. Perhaps you should take your home off the market and wait for inventory to drop. Selling is difficult, because buyers expect to bargain. If you try to negotiate during holidays, for example, you might lose money. If you can afford to hold out, wait until the Spring or Summer.

You can take out a mortgage: If you are selling based on financial needs, it might make sense to take out a home equity loan if you can afford to pay a higher payment monthly. If your existing loan is an ADR (adjustable rate mortgage), and a higher interest rate has raised your payment to the extent that you can no longer afford to pay it, you might be able to re-negotiate a loan modification plan with your lender. 

Consider renting your house: Some home sellers have no choice but to rent it out. For a variety of reasons, from job promotions to family-related matters, a home seller might be forced to relocate and leave an existing home behind. Even if you can’t receive enough rent to cover your mortgage payments, you will still be earning something. You should thoroughly screen tenants and hire people if repairs become necessary. Getting a call from a tenant at 10 pm is not ideal. Ask neighbors to keep an eye on your home and to notify you if they become suspicious of the tenants.

Don’t balk at the idea of a short sale: If you’ve purchased your home within the past few years, it’s possible that you owe more than your home is worth. Talk to a realtor who specializes in short sales; she may be able to negotiate with your lender to accept less than your mortgage balance. 

“Rent-to-own” your house: You might talk to your real estate agent about doing a lease-to-own purchase rather than an actual sale. These types of options are appealing to buyers that really want to buy a house, but can’t, because they either have short or bad credit histories, and cannot get a traditional loan.

Other times, the person just doesn’t know if they want to rent or buy. Either way, if you are going to go this route, have a lawyer meet with you to go over all of the pertinent documents. Usually the rent is higher in these situations, so you’ll earn some extra money.

Ask your boss about a “purchase program”: If you are having to move because of a job, you might want to ask about a guaranteed purchase program. Lots of employers hire companies that offer buy-outs for their employees. It’s rare, but hey…you never know unless you ask.

If You Can’t Sell Your House, Should You Rent It? – CBS News

If You Can’t Sell It, Rent It – US News Money

List Your Rental Home For Free – Trulia

Comments 2

  • Please don’t rule out renting your home as an option. You have to be honest with yourself about your house, and whether or not you should take it off the market. If it’s not doing very well, you really should lease it for a few months then re-list. You don’t have to do a standard 6-12 month lease. You can write whatever living arrangement term you’d like. Now..whether or not you can find tenants that want to do month to month, or 3 months, and so a different story. But it can be done.

  • If your house isn’t selling, you either didn’t price it right, or didn’t stage it to make it aesthetically pleasing to buyers. Those usually are the only two reasons, IMHO. Just saying 🙂

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