Home ownership is a life goal for many people. We’re taught from the time we’re young that owning your own home is an achievement and a sign of stability. But sometimes life can deal you a tough hand, putting you in the position of needing to sell your home to stay afloat.
In today’s economy, many people are out of work. Whether you’re the victim of downsizing or company closure, it’s a sad reality that you could lose your source of income overnight and can’t pay the mortgage. If you do, there are a few things to consider before you decide how to move forward:
1. Determine Your Benefits
The first thing you should do after losing your job is head to your local unemployment office. If you qualify for benefits, they could help you string resources together while you look for work. It will likely be significantly less than your previous take-home pay, but something is better than nothing, right?
Many people make the mistake upon losing their job of letting go of their health coverage. While COBRA or buying out-of-pocket coverage can be expensive, you have to consider the expenses you could incur if you become very ill or have a terrible accident during a lapse in coverage.
2. Examine Your Budget
Once you have explored your benefit options and determined what your new income is going to be, it’s time to take a hard look at your budget. Figure out what is non-negotiable and what can be trimmed. You may see, when you examine your finances, that you’re spending more than you realized on things like food and entertainment.
It can be difficult to make spending cuts, especially if you have children, but this is the time for everyone in the family to buckle down and make sacrifices. Even eliminating small things like ordering takeout or going to the movies can help you stretch your money while you hunt for a new full-time gig.
3. Consider Your Timeline
Unfortunately, no one can predict how long you’ll be out of work. If you do have savings, calculate how long you can safely draw from it without depleting it entirely. You’ll need to do long-term planning and consider any major, unavoidable expenses coming up in the next six to 12 months (homeowner’s insurance, school tuition, taxes, etc.) and how you’ll handle paying for them.
If you don’t have much in the way of savings and the job market in your area is tight, you may find yourself unable to scrape together enough to keep things moving for you and your family while also making mortgage payments. It’s incredibly hard to come to the conclusion that you have to sell your home in order to pay your bills. But if you’re there, realize that you’re not alone.
If you think you can budget and hold things together for up to a year, you could go the traditional route and sell your home through a real estate agency. You’ll probably need to do some minor home repairs and deep cleaning. You should also be ready to show your home whenever a buyer wants to see it.
It’s also smart to consider how much profit you need to make from the sale in order to keep your household running, and calculate if you can afford to lose some of the sale price to listing fees and commissions.
You could also choose to handle the sale yourself, if you have the time. But make sure to do your homework on all the necessary paperwork (which will be your responsibility alone) as well as how to handle things like inspections and confirming buyer financing. Don’t get yourself into an even worse situation by taking a big loss because you neglected something important about the sale process.
But what if you don’t have a nest egg to live off of, and you don’t qualify for any benefits? You might be in a very time-sensitive spot and need to sell your house quickly in order to avoid losing everything. In this situation, working with a reputable cash homebuyer company could be the answer.
Here at Meridian Trust, we know that life is unpredictable. Sometimes we have to let go of the things we love in order to preserve our future. We purchase homes all over Florida, and if you need to sell your house after losing your job, we are here to help.
Our knowledgeable experts are ready to take your call and help you sell your home for cash fast so that you can gain some breathing room, some peace of mind, and the flexibility to find a great new job. Give us a call today at 866-381-2591.