When to Sell Instead of Remortgage

sold house

When to Sell Instead of Remortgage

You’ve run into financial trouble. You’re facing difficult times ahead, due to a job loss, a divorce or another unfortunate financial setback. Your bills are piling up and you don’t know how to keep your head above water. And you’re no longer sleeping at night, since you’re worried about losing your home.

You could look into yet another loan to consolidate your debt, hoping itwill fix your financial situation. But sometimes, it’s better to sell your home instead of trying to remortgage again. Let’s look at some situations where you would be ahead if you chose to go back to renting, at least for a little while.

When You Know You Can’t Make Your Mortgage Payments

Even if you haven’t yet missed a payment, you might know you can no longer afford to pay your mortgage. You likely don’t want to sell your home, but it just might be the best financial decision you can make.

Don’t wait for the bank to start the power of sale process. You’ll keep more of your own money if you control the sale of your home. You can take a little time to make your home look as good as possible, and try to get the highest selling price.

You won’t need to pay for legal advice or other fees related to a power of sale process.By being proactive, you can stay ahead of the stress of being delinquent on your mortgage.

Your Lender Has Already Started a Power of Sale

Have you already received notice from your bank that you are behind on your mortgage payments?Are they starting a power of sale? Is the sheriff about to show up on your doorstep with an eviction notice? You may feel like you’re going to lose everything, but it may not be too late.

There are steps we can take to stop a power of sale. By giving you a little extra time, you can then fix up and sell your home yourself.

When Selling Your Home Let’s You Get Rid of High Interest Debt

Are you stuck in an endless cycle of credit card debt and payday loans? You’re not alone. The current ratio of household debt to disposable income in Canada is at an all-time high. The latest report from Statistics Canada  explains that by the end of 2015, “households held $1.65 in credit market debt for every dollar of disposable income.”

Once you’re stuck paying high interest rates, it’s very difficult – if not impossible – to get ahead. Soon, interest payments are so high that it’s hard to make even minimum payments.

If you’ve built a little equity in your home, selling it may allow you to pay off many of your high interest loans. Since renting tends to be less expensive than owning, you can spend less on housing and continue to pay off any remaining debt. Once paid off, make sure you don’t start charging purchases again. Don’t let the cycle start all over!

When Selling Your Home Let’s You Avoid Bankruptcy

Sometimes, you just need a clean slate. If selling your home lets you avoid bankruptcy, it’s probably your best course of action.

Before making a decision to sell or remortgage, get legal and financial advice. A professional mortgage agent can let you know what your options are, while a lawyer can inform you of your legal rights and responsibilities.

Don’t know where to start? Contact us, and we’ll provide you with a free consultation. We can also help you find the right real estate and legal professionals to get you back onto better financial footing.