Should I sell my house to pay off debt?

On Behalf of | Jun 17, 2021 | Foreclosure |

When a Michigan resident is facing overwhelming debt, they can consider extreme options to keep themselves afloat. This often includes selling off their house in order to pay off their debts. As difficult as it is to consider selling the place where one has a lot of memories, it might be the best option for some people to get out from under the bills they owe.

Moving away

Depending on the stage of life one is at, a debtor may have outgrown his or her home. Alternatively, the house may be too big and maintaining the house may be adding to the bills. In those situations, it might make sense to sell one’s house and move into a smaller place.

Equity

If the homeowner has equity in the property, then it most probably makes sense to sell it off. However, if a debtor knows that even after selling off their house they will not have enough money to make ends meet, then selling off the house may not be the best option. It might result in someone struggling to repay debts while not having a roof over one’s head.

When one is paying off debt via the sale of property, the property must have sufficient value. A house is a significant investment, and should not be sold at a lesser price in a hurry if there are options available. To understand what one’s options are in the face of overwhelming debt, it might