People will often buy a house only to have their needs change as the years go by. Paying a mortgage on an unwanted house can be incredibly stressful and frustrating. To get out of your mortgage in Pensacola, Florida or anywhere nationwide would be better than making payments just to see your principal no going anywhere, and you only paying interest. That can’t be good for anyone! In this post, we offer 9 ways to get out of your mortgage in Pensacola so you can move on with your life!
Paying an expensive mortgage month in and month out can take its toll. Especially if you have grown out of the house and are looking for something different. Below, we offer information to help you get out of your mortgage fast, without having to worry about excessive fees or penalties. If you have any questions about getting out of your mortgage in Pensacola, we want to hear from you!
1- Sell Your House Fast
The easiest and most convenient way to get out of your mortgage in Pensacola is to sell your house to a direct buyer. Quality Properties Of Northwest Florida LLC buys houses directly from local homeowners and can close in only a matter of days.
Selling your house fast in Pensacola will save you a fortune on holding costs including continued utilities, property maintenance, taxes, homeowners insurance premiums, and more. A traditional listing can be effective, but the process can end up taking several months while costing you a lot of money. For those who are looking to sell right away, a direct sale to Quality Properties Of Northwest Florida LLC will help to save time and money, giving you the peace of mind you need!
In an article was written in Forbes magazine on February 22nd 2021 by Mark Henricks he said “If you’re feeling the need to escape your mortgage because you can’t pay, you aren’t alone. In November 2020, 3.9% of mortgages were seriously delinquent—meaning they were at least 90 days past due, according to real estate data firm CoreLogic. That delinquency rate was three times higher than the same month in 2019, but it was down sharply from the pandemic high of 4.2% in April 2020.”
In that article his number one way to get out of your mortgage was is to sell your house. ” One of the best and fastest ways to get out of a mortgage is to sell the property and use the proceeds to pay off the loan. The process of preparing, listing, selling and closing on a home sale can take as little as several weeks.” Mark Henricks said.
2- Refinance or Mortgage Modification
If you can afford mortgage payments but need lower monthly installments, refinancing or mortgage modification could be viable solutions. Refinancing means obtaining a new mortgage loan. Your new lender will pay off your original loan, and you will have to pay the new lender instead. Whereas mortgage modification is when your lender agrees to modify the terms of your mortgage. The interest rate, term, or monthly installments may change, but the loan principal won’t.
3- Short Sale
A short sale is when a homeowner faces foreclosure, sells their house for less than the amount owed on their mortgage, and the lender agrees to take the loss. Short sales are usually arranged by real estate agents or lawyers who specialize in them. If you’re considering a short sale, the lender must approve it, and you will need to provide documentation about your income and assets. A successful short sale can help reduce the negative impact of foreclosure on your credit score.
4- Deed In Lieu of Foreclosure
A deed in lieu of foreclosure is when a homeowner gives their house deed to the lender, and the lender has no right to foreclose on the house. This practice is a last resort for homeowners who don’t qualify for refinancing or a short sale, and don’t want to go through the foreclosure process. The lender may ask you to check your eligibility for a loan modification, which is the best option before turning to a deed in lieu of foreclosure.
Bankruptcy is a legal process where homeowners can discharge certain debts, including mortgage payments, and possibly retain their home. Chapter 7 and Chapter 13 are the most common types of bankruptcy for homeowners, and they differ in the way they treat mortgages. However, bankruptcy laws are very complex, and homeowners considering this option should consult with a bankruptcy attorney.
6- Hire An Agent
Many people choose to hire a Pensacola real estate agent when it is time to sell their home. While an agent can be beneficial in some transactions, in others, the costs and fees aren’t worth it. If you do not mind paying agent commissions, making repairs, or waiting around for a buyer, hiring a Pensacola real estate agent may be the best option for you.
If you need to get out of your mortgage right away in Pensacola, you may be better off with selling your house directly. An agent can end up being very expensive, working with our team will help you get out of the mortgage for your unwanted house in Pensacola without any cost or hassle.
7- Rent It Out
While technically you will still be on the hook for the mortgage payment each month, you will be able to have your tenants pay it for you. Finding the right tenants can not only help to pay off your mortgage, but you may be able to collect passive income this way too. Keep in mind that not all properties make great rentals and not everyone is cut out to be a landlord. Even still, if you find the right property management company, you can find great tenants, rent out your property, and have someone else pay your mortgage for you.
8- Gift It
You don’t necessarily have to give the property away, but you can give it so someone else and have them assume the mortgage. Maybe you have children or another family member who would be interested in having the house. You can either have them assume the mortgage if possible, or you can sell it to them for what you owe, ensuring your debt gets paid off, without any further penalties or fees.
You will benefit by cutting your ties with the house, whereas your friend or family member will score a great deal by taking the property off of your hands. It’s a win-win situation for everyone involved.
9- Rent To Own
Selling your house via rent to own works great for those who want to sell for market value and who don’t mind waiting a while before the home is sold outright and they have collected the full sale price. A rent to own agreement will open the door to numerous potential buyers, giving you better odds of a fast sale at a great price.
While you won’t see the entirety of the sale price right away, you will be able to collect higher than average rent, a deposit, and guaranteed income for the next 1-2 years. Once the rental term is up, your tenant will have the option to buy the house outright. If they are unable to, the house will remain in your name, and you can either choose to sell it or rent it out to another individual.
Getting out of a mortgage in Pensacola can be stressful and demanding, but it’s not impossible. There are various options available to homeowners in Pensacola, depending on their financial situation, credit score, and personal circumstance. If you’re struggling with mortgage payments, the best thing you can do is reach out to your lender and discuss various options.
We hope that this blog has provided insight into the different ways to get out of your mortgage in Pensacola, and that you find the best possible solution for yourself and your family.
Are you ready to get out of your mortgage in Pensacola? Working with Quality Properties Of Northwest Florida LLC will help you get the price you want for your house while saving you a fortune along the way. We can help you get out of your mortgage so you don’t have to feel stuck with your unwanted property any longer! If you need to sell your house fast, our team is here to support you!