With the downturn in the market, many folks have been unable to sell even when they need to. Fortunately, underwater homeowners have a few options. Here are some ideas you can use:
- HARP2 Refinance: The first thing you should look into is getting your home refinanced, especially if your rate is above 4.5%. This will get your payments down and give you some breathing room for the other options I will outline below.
- Rent your home out: I have had many folks decide to take this path. They did a refinance to lower their payment, applied for another loan for a new primary residence, and then rented out their old primary residence. They then had a cheaper payment on their new home and used the rent to pay their new home while they continued to pay their old payment on their existing home. I have many happy homeowners who have done this.
- Short Sale: Are you barely hanging on to your home? This may be an option for you. This means selling the home for less than you owe if you qualify for certain hardships (ie: your expenses each month outweigh your income). It will hurt your credit for usually about three years (there are exceptions to this). Feel free me to contact me to discuss your current situation.
- Wait on the market: This could take a painstakingly long time depending on what part of Snellville you live in. While we are seeing some improvement in values, we are still seeing a large number of distressed sales in the South Gwinnett and Shiloh school districts. Once these subside (estimates are 3-5 years), we could see a noticeable rebound in prices.
By the Numbers
Months of supply of inventory available (the lower the number, the better chances prices will increase):
Now: 3.4 months, 42 sold per month (average)
2011: 3.2 months, and 45 sold per month
Now: 3 months, 72 sold per month
2011: 3.1 months, 68.7 sold per month
Now: 3.1 months, 53 sold per month
2011: 3.7 months, 45.4 sold per month
Deals of the Week:
South Gwinnett Curb Appeal: Check out the yard and condition of this beauty!
Shiloh Royalty: Check out this stately home. Can you say red carpet?
Brookwood Foreclosure: Not many of these around. Jump on this one while you can.