As we’ve recently discussed, home sales are going great guns; housing starts are up – good times all around, right?
But what if you were slammed during the housing crisis? What if you still owe more on your home than it’s currently worth? Can you still sell? Can you refinance?
Our good friends at Trulia have an excellent article in their ongoing Real Estate 101 series have some suggestions for selling or refinancing with low equity.
First, they point out that when re-selling you can expect to pay out 6% to 10% in commissions at the closing. Best to factor that in before even considering a sale or you’ll have to out in the extra money.
They also advise against a short sale, unless absolutely necessary, as it will damage your credit and make it hard to obtain another mortgage in the near future.
Their advice: postpone selling your home; instead try to refinance now and hopefully make some money down the road. Work with your mortgage company, readjust your budget, seek government assistance, even rent out your home.
Basically, their advise is to hold on if possible: as the economy continues to improve, home prices will continue to rise and more homeowners – perhaps even you – will benefit.