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Is Selling My Home A Good Way To Get Out Of Debt?

Is Selling My Home A Good Way To Get Out Of Debt?

Are you at your wit’s end trying to make ends meet? Spiraling into more and more debt with each passing day? Are you wondering: “Should I sell my house fast in Santa Rosa, FL to finally break free from this vicious debt cycle?”

If you’ve answered “yes” to any of the aforementioned questions, then this blog is for you. Here, we cover whether or not it’s a good idea to sell your home to cover debts.

Scenario 1: You Have An Oversized Mortgage Payment

If your mortgage payment takes a significant portion of your paycheck and you’ve got nothing left over to service your debts, it might be time to consider selling your home. A mortgage payment should be no more than 25% of your take-home pay. If you’re spending more than half your monthly income on a mortgage, it’s time to cut your losses and make a quick sale.

Scenario 2: You Were Planning On Moving Anyway

You might have contemplated moving away before your debt situation got out of control. For example, you might have been planning to downsize now that your children are adults and there’s less family around your home. Or you might have planned to move to a less expensive neighborhood. If either instance applies to you, you should sell now and use the money you get from the sale to ensure a smooth move. Once you move, pay off your debts.

Scenario 3: You Have Accumulated Enough Home Equity To Pay Off Your Debts

Selling your home might be a good move if you’ve built up plenty of home equity. If, for example, property prices are high and there’s massive demand for homes in your neighborhood in Santa Rosa, this might be an excellent opportunity to sell your property and use the proceeds to repay all or a majority of your debts.

Weigh The Pros & Cons Before Making A Sale

For most individuals, selling a home is a significant transaction. After all, a home isn’t just a financial asset; it’s also something you get emotionally attached to over the years. In short, selling might not be the best choice for you if you’re emotionally attached to your home. Instead, consider alternatives like refinancing or cutting down on unnecessary expenses so you can repay outstanding debts without selling your home.

Ask These Questions Before You Sell Your House In Santa Rosa To Pay Off Debt

Selling your home is a big deal. Therefore, you must be 100% sure that selling is the right move before you do. Here are a few questions you should ask yourself before deciding to sell:

  • “Will selling my house help me clear all my debts?”
  • “Will I be able to afford rent or the cost of moving after the sale?”
  • “What are the closing costs? Will I be able to make a profit after paying all the fees?”
  • “How much will I profit from the sale?”
  • “Am I emotionally prepared to move out of the house?”

Think It’s Time To Sell Your Santa Rosa Home?

If so, you should contact an experienced real estate agent and pay them to provide a comparative market analysis (CMA). This will give you a clear picture of what similar homes in your neighborhood have sold for. Or you can avoid all the hassles associated with a traditional home sale and sell to cash home buyers in Santa Rosa, FL. You can sell the home as is and close in under 30 days when you sell for cash.

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