When you buy a house, it is thrilling and emotional. At that moment, you can’t see everything that will happen in your life down the road. You don’t know what life will bring in the next five or ten years. So what do you do when you are saddled with a mortgage that you can no longer afford to pay? How do you get out of your mortgage?
It can be so stressful to be in a legal contract for payments you cannot or no longer want to pay. Whether you need to move, lost your job, or are separating from your spouse, you need to know how to get a mortgage out of your name.
There are several options here. Some less desirable than others. You can allow the bank to foreclose on your property. This option is “easy” but it comes with a host of consequences. It damages your credit score and can make it difficult to get another mortgage in the future. Below we have listed 5 legal ways to get out of your mortgage.
5 Ways to Get Out of Your Mortgage
1. Sell Fast
If you can no longer make your payments selling your house is a great option. Depending on your situation you may not have time to wait for it to sell and close through a lender. Traditional selling is often a 60-90 day process. Sometimes longer.
If you have lost your job and cannot afford the payments, two more months of payments is not an option. You need to sell your house and you need to do it fast.
The easiest and most convenient option to sell your house fast is to sell it to a cash buyer. When the sale is cash, there is no need for lending through a bank, which eliminates the lengthy close time. Real estate investors are always on the lookout for properties they can buy and flip or turn into a rental.
Rust Belt Cash Offer buys houses directly from the homeowner without involving a real estate agent. We can close in 7 days or less and save you money by avoiding holding costs. The longer you wait to close on the sale of your house, the more utility, taxes and mortgage payments you have to make. Closing quickly with Rust Belt gets rid of those extra costs and gets you out of your mortgage fast.
If you need to sell fast, Rust Belt Cash Offer will pay you cash, save you time and money, AND give you peace of mind.
2. Hire an Agent
When the market is hot, hiring an agent can be a great option. If houses are selling like hotcakes, it is likely your house will only “sit” on the market for a few days or weeks. This can be a good option if you are not in a rush and you don’t mind paying a commission on the sale of your house.
When you need to sell fast, this might not be the best option. Even in a seller’s market, the time it takes to close a home loan can be prohibitive. There are no guarantees with a traditional sales route. A buyer’s financing can fall through. They can choose to back out once the inspection is done. The house might not appraise high enough for loan approval. There are so many unknowns.
An agent can end up being expensive. When you work with our team you can sell your house without the cost or hassle.
3. Rent it Out
Technically with this option, you are still on the hook for your mortgage. That said, it can be a fantastic choice. When you rent your property, it allows you to keep ownership while someone else makes the payments. Renting your home can help you pay off your mortgage AND collect passive income.
There are many factors to consider before you decide to go this route. Are you ready to be a landlord? Working with tenants is not always easy. It’s your job to make sure the mortgage gets paid, so what will you do if your renters don’t pay their rent on time?
Consider whether or not your property is a good rental. Will you have to do repairs to make it marketable? Can you afford to do the repairs? Is it in a desirable area?
If you decide to rent it out, hire a good property management company. They will take care of the details while you collect payments and keep ownership of your house.
4. Gift It
Do your kids or other relatives want your house? You don’t have to give the property away, but you can gift the equity. This means you sign the house AND the home loan over to this person. They take over the mortgage payments but do not pay you back for what you have already paid on the loan.
Another option is to sell the house only for what you owe. Again this would probably be to a family member or friend. In this instance, you collect the payment and then pay off your mortgage with the bank.
This is a win-win. You cut your ties with the house (and the bank) and your buyer gets a great deal on a house.
5. Rent to Own
Allowing a buyer to “Rent to Own” your house can be great if you want to get market value for your home and don’t mind waiting to hand over the deed. In this case, the buyer often can’t qualify for traditional lending. Instead, they choose to rent the house from you. You agree to apply part of their rent payment to the balance of the home sale.
At the end of the rental agreement, the tenant has the option to purchase the home. If they are unable to, you have the option to extend the “Rent to Own” agreement or sell the house to another buyer. The house remains in your name until the sale is complete.
Get Out of Your Mortgage Now
Are you ready to get out of your mortgage in Buffalo? Work with Rust Belt Cash Offer for a fast sale. We will make you a fair, all-cash offer, and save you time and money along the way. We want to help you get out of your mortgage and out of your unwanted property. If you need to sell fast, our team is here to support you