Selling a House to get rid of paying a 2nd Mortgage
Selling an extra vacant house to avoid paying two mortgages is a financially sound decision for several compelling reasons:
We had a recent project on Reese Ave in Lancaster Ohio where the Seller was stressed by paying his own mortgage and his dad had just passed away leaving another mortgage to pay. We provided a fast and cash closing to help stop the financial pressure.
Here’s why selling a vacant house with a 2nd mortgage payment is a solid financial move:
Financial Relief and Risk Reduction:
Eliminates a significant expense: Owning two mortgages means doubling your monthly housing costs. This includes not only the principal and interest payments but also property taxes, homeowners insurance, and potential maintenance for both properties. Selling the vacant house eliminates one of these substantial financial burdens, freeing up cash flow for improving your monthly budget.
Reduces debt and improves financial stability: Carrying two mortgages increases your overall debt. Reducing this debt load improves your debt-to-income ratio, making you a less risky borrower in the future and potentially opening doors to better interest rates on other loans.
Avoids potential for foreclosure: If you struggle to keep up with two mortgage payments, you risk defaulting on one or both loans, leading to severe consequences like foreclosure and significant damage to your credit score. Selling the vacant property reduces this risk.
Ends ongoing ownership costs: Even if the house is vacant, you'll still incur costs like utilities (to prevent issues like frozen pipes), landscaping, and general upkeep to maintain its condition. Selling transfers these responsibilities and expenses to the new owner.
Mitigates potential for negative equity: If the value of the vacant property declines, you could end up owing more on the mortgage than the house is worth. Selling now can help you avoid this situation.
Property Management and Liability:
Eliminates management hassles: Even vacant properties require some level of management, including security checks, potential repairs from weather or vandalism, and ensuring compliance with local ordinances. Selling removes these responsibilities.
Reduces liability risks: A vacant property can be a target for vandalism, squatters, or accidents. As the owner, you could be held liable for any damages or injuries that occur on the property. Selling transfers these risks.
Opportunity Costs:
Frees up capital for better investments: The money tied up in the equity of the vacant house, as well as the ongoing mortgage payments, could be used for other investments with potentially higher returns. Selling allows you to reallocate these funds.
Simplifies your life: Managing multiple properties can be time-consuming and stressful. Selling the vacant one simplifies your financial life and reduces administrative burdens.
In conclusion, selling an extra vacant house to avoid paying two mortgages is a wise financial decision that reduces debt, eliminates significant expenses and management hassles, lowers risks, and frees up funds for other opportunities. It provides greater financial security and simplifies your overall financial life.
Text us today for a quick, confidential offer 740-240-6222!
