Top Guidelines When Selling a House to Pay Off Debt 28 Comments
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These past five years have represented some of the most difficult economic times since the Great Depression. Millions of individuals now find themselves without work or unable to secure much-needed loans. For some, even daily survival has become a financial challenge and the economy does not seem to have rounded the corner as of yet. These days are defined more by pragmatism than by realism. One method that some choose to employ to pay off debt is to either re-mortgage or to sell their property. Let us have a brief examination at some of the benefits of each option.
One of the main advantages of re-mortgaging a property is the ability to secure additional capital to help combat any financial woes. This extra liquidity can be used for a range of options, from paying off an outstanding credit card bill to purchasing a new vehicle. Additionally, a re-mortgage gives an opportunity to consolidate existing debts into one low monthly payment which is often more manageable than many disparate loans remaining unpaid. Finally, by examining different providers the homeowner is frequently able to secure a much lower interest rate. This has substantial benefits when payments are due and will aid in putting more capital back into the owner’s pocket rather than towards a payment.
If one chooses to sell property, the advantages here as equally as important to recognise. One fundamental difference with a home or property sale is the sense of freedom once the transaction is completed. Unlike a re-mortgage, the homeowner is free to do what he or she wishes with the generated profits. Should he or she fall upon hard times, the optimal choice may be to pay off existing debts in one lump sum. Most debt agencies and corporations prefer this form of payment and there may be room for a lesser full payment than if one were to stretch an incremental plan over months or years. Secondly, we are currently in the midst of one of the largest buyer’s markets in recent history. Should the property have had a great deal of equity, the choices for a subsequent purchase may be plentiful. What is more important is that in such a low-priced market, a new home purchased may be viewed as a medium-term investment for children or grandchildren in the years to come. Finally, there may be additional tax incentives in the case of a property sale as opposed to a re-mortgage.
However, it is essential to realise that either option may present a considerable challenge for those not well-versed in the intricacies of re-mortgaging or selling a property. Should the homeowner decide to “go it alone”, the stress involved can be profound and with selling in particular, the legal nuances behind a correct execution are best left to the professionals. The good news is that in these difficult economic times there are no lack of companies which can greatly aid in determining the correct option. Enterprises such as http://www.nationalhomebuyers.co.uk/ represent one of the best choices for a well-thought out property selling solution. One’s home is both an emotional and a financial investment. Choosing the right solution can help put the homeowner on a path towards financial health and freedom. With a simple consultation, a trained professional can help determine which path may be the best one to choose.