Submitted by Jen Jones on Wed, 08/15/2012 - 1:13pm
It’s a common scenario: if you have enough money to send your kids to college in the wake of the recent recession, or your children have simply moved away and your “nest is empty,” you may be living in more house than you can afford, doling out thousands a year for property taxes on a larger property than you need.
Many of these same couples or single families may be considering the benefits of bankruptcy for other financial woes, feeling it’s too soon to sell their largest asset—that may or may not have the equity to get them out of a scary financial situation. Maybe you’re one of them? Thinking you’ll wait out the market to get more money later?
News flash: many economic experts are saying that the time to sell is now.
In a recent article in online financial portal The Street, Paul Anastos, president of Mortgage Master, thinks people like you “could be missing out on a great opportunity by waiting it out. ‘If your children are off to college and you happen to be in a much sought after location or a good school district, you may want to consider selling now. You'll get a lot of bang for your buck.’
Why? Apparently mortgage rates of all types are at or near their lowest levels in history. “Anastos says he is seeing competitive bids -- three or four offers for a single property -- and houses being bought at the full asking price. According to Zillow, the 30-year fixed-rate mortgage has an interest rate near 3.5%, while the 15-year fixed-rate mortgage has a rate less than 2.9%, each for the most highly qualified borrowers.”
These competitive rates combined with a rebound in demand for homes, especially in areas with great school systems or otherwise “in demand” this season (think: a new school year for many families seeking home ownership solutions), may be just the ticket for people struggling financially in other areas.
And, as The Street points out, this is particularly true for older couples. “In many cases, avoiding exorbitant property taxes is the motivation for older families to sell. A couple living in a three-bedroom, two-bath home in Tenafly, N.J., for example, could save more than $10,000 per year in property taxes by moving to a one-bedroom condo in Edgewater, N.J.”
But property tax burdens aren’t necessarily the only motivation for planning to sell. Imagine you have no other income to put your kids through college. Or, you may have tapped into your retirement fund during the recent recession and you’re looking toward your empty next to seed your “nest egg.” Dispensing with your in-demand abode may be just the ticket to securing your financial freedom or maintaining a fiscal responsibility.
Regardless of the reason for selling your home, the experts believe you should consider your options quickly. Even though mortgage rates are lower than ever, most of the real estate industry knows they will not last forever and rates may begin to rise within the next year, leaving many with fewer options in 2013.
As real estate agent Joshua Baris told The Street, "Whatever your motivation is for selling, it's important to act fast. There is so much buying power now and you wouldn't want to pass up on this opportunity -- on hopes that your home's value would be much higher five years from now."
However, if you’re one of the unlucky many whose home values aren’t keeping up with the cost of living in it, knowing a qualified bankruptcy attorney can also help, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy lawyers at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to find a solution to your housing sorrows.
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