Believe it or not, in the Clearwater and Safety Harbor areas, as I'm guessing in other areas, there are still people with second homes who have not remortaged them and who are either free and clear or who owe just a small mortgage. If you are one of those home owners perhaps you no longer use that second home or maybe it was a parent's home who has either passed or has gone to live with family, perhaps it was originally a vacation retreat that's just not used much any more.
"If only I'd sold a few years ago," could be the mantra of those who didn't sell their homes during the boom time. But in every down market there is opportunity. Unfortunately this market finds us with many people who have lost their homes and will need to rent for some time, there ARE those, however who have managed to bounce back from adversity fairly quickly and who, although they may not be a candidate for a traditional mortgage they are still able to afford a home, and are eager to take advantage of our lower home prices. So, how to sell those homes, get a good price and still make some money? Consider holding a mortgage. If you were to invest your money in a CD or just keep it in the bank it's unlikely you could make the return you would on holding a mortgage. Plus, if you sell your home you would no longer have the expenses of taxes, insurance and maintenance, and you would defer the capital gain...
Now, let me state emphatically, that i am not a lawyer or an accountant, I would certainly advise anyone considering doing this to speak with one, but with a credit and background check of a potential buyer, holding a mortgage could prove to be a very workable solution for many second home owners. There are a variety of ways this can be accomplished, through a trust, with a third party manager or just directly. But in these unusual times it's a thought worthy of consideration.
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