Property In Negative Equity Need To Sell? – there could be a number of reasons why you need to sell your property, but you cannot because of negative equity in the property you want to sell.
Find out more about selling a house in negative equity by reading on.
Why You Need To Sell Your Negative Equity House
One of the top reasons for moving home is when you need more space.
This could be for a growing family or perhaps to take in your parents in their old age.
You might need a better more improved property to live in and instead of making improvements to your existing property, you decide to move house and upgrade at the same time.
You may have got a new job and need to relocate near your new employer, which will also necessitate selling and buying a new property.
It could also be things like a breakdown in a relationship, moving closer to family and maybe even moving into a catchment area for a school you want your children to attend.
Whatever the reason is for moving house, it is just not as simple when you have negative equity in the property you have to sell, but thankfully there are ways around it.
So What Are Your Options When You’ve Got Property In Negative Equity Need To Sell?
Some suggestions are:
- if you are in an interest only mortgage, then convert it to a capital repayment mortgage instead. The monthly mortgage payments will be significantly more, but you are gradually reducing the amount of the mortgage loan.
- If you have significant savings, you could use these to reduce the mortgage balance.
- You could try increasing the value of your house so that it comes above the mortgage amount, which will bring you out of negative equity and allow you to sell.
- You could rent out your property and get an income to hopefully cover the mortgage payments and then move to another suitable property by renting or buying.
- You could stick it out and wait to see if your value eventually rises above your mortgage amount.
However, the problem with most of the above suggestions are that they are going to cost you a serious amount of money to implement.
Money you might just not have.
When you need to sell your house because of negative equity, then you need to read through our real options.
Remember, it is not you that has caused this situation and you are not to blame, so you need a solution that helps you out of it without it costing you even more money.