What To Do When Your Upside Down

Many Saint Paul home sellers are faced with the problem of being "upside-down" on their mortgages. The fact is that in order for you to sell your house in the MN real estatemarket today you need to pay off the entire mortgage in order to sell the home. Unless you want to arrange with your lender sell your home on a short sale, this means you will bring money to the closing in order to pay off the remaining balance that you owe. Many home sellers who need to move now are considering the possibility of making their current home available to rent with the hope of buying a new house.

Saint Paul Home Sellers: Can You Cover Your Expenses?

The good news today is that with the tougher housing market, the amount you can get for rent has increased significantly. Renters find that they are competing with each other to rent out your home as their is a shortage of quality rentals available today. Many people are finding that they can more than cover the expenses for retaining the home with these higher rents available.

The goal, of course, is to rent the current home out long enough to allow the Saint Paul real estate market to recover in terms of values. Hopefully within a few years the value of your rental home will rise sufficiently to sell it for enough to pay off the mortgage. The key to accomplishing this is to see if you will qualify for a new mortgage if you have rented out your current home.

Will rental income offset my mortgage payment when qualifying for a new mortgage?

Lenders have guidelines for the Saint Paul sellers who have decided rent out their home in order to buy another. Depending on the equity that you have in your home, a mortgage lender may or may not consider the
rental income you receive when they qualify you for the new mortgage. The only way to know this is to call a lender to get preapproved.

Get preapproved right away

Once we have a chance to meet to discuss the value of your current home it is important that you go through the process of getting preapproved for a mortgage loan. Your mortgage lender can help you decide which of the options are best whether renting or selling your current house. The process of mortgage preapproval is is usually free and contains no loan obligation. A good lender will be able to examine all of the
options available to you such as MN FHA loans, VA, conventional, or other types of loans.

City of St. Paul Information

As both the capitol of Minnesota and the county seat of Ramsey County living in the city of Saint Paul is filled with things to do. Popular attractions such as the Xcel Energy Center, the Science Museum of Minnesota, and Ordway Center for the Performing Arts make St. Paul a popular destination for both its residents as well as those living in surrounding suburbs. Employment opportunities abound in St. Paul with major employers such as Ecolab, Lawson Software, Gander Mountain, and nearby 3M. St. Paul housing can be especially affordable for first time home buyers through the Ramsey County's First Home program. Residents enjoy popular regional events such as the Minnesota State Fair and the Winter Carnival. If you thinking of buying or selling a home in St. Paul please send me and email or give me a call as I'd love to help you accomplish your goal.

If you are considering renting out your current home, please call or email me for more information.

Casey Anderson
Sales Executive, Licensed Realtor in Minnesota
IBR Realty
caseyanderson@ibrrealty.com
Cell 651-245-1820
Woodbury, MN 55125
With a focus on Woodbury real estate and surrounding communities.