Many people experience money problems at some point in their lives, and sometimes to get out of trouble people need to make some drastic decisions. Today we want to discuss some common factors that lead people into selling their homes and why it is actually more beneficial for them in the long run. Continue reading to find out more.
If you owe the IRS a boatload of cash, then it is probably highly unlikely you will be able to fork over the cash on a whim and believe it or not, the IRS can actually repossess your home if you choose not to sell it first. The government knows that if they repossess your home, then they will at least get some of those tax dollars back and frankly, they don’t care if you end up homeless or not. Did you know that every year almost 8.2 million Americans owed at least 83 billion in back taxes? This study was done way back in 2008, and experts believe every year that number keeps climbing higher and higher.
Sometimes, selling your home to avoid tax evasion and other consequences from the IRS is the best option at hand, and at some point, when you get your finances in order again, you can just buy another home. This is definitely better than winding up in prison for tax evasion. There is always light at the end of the tunnel, but you just have to know where to look!
2. Student Loan Debt Can Force You to Sell Your Home, Too!
Another common reason property owners choose to let go of their home or property is because they owe thousands of dollars in student loan debt, and let’s face it, this kind of debt is just like taxes, because it never goes away. In fact, many people end up paying their student loans back until the day they die. One of the main reasons student loans cause many homeowners to become renters is because each month interest also continues to grow and if you don’t pay your student loans on time, then you most likely will end up owing way more than you borrowed in the first place.
Ignoring these types of loans can also have drastic consequences on your credit reports and can actually end up prohibiting you from getting other types of loans in the future. It is definitely smart to make timely monthly payments on your student loans unless you want to end up in the unwanted situation, too!
3. Spending Above Your Means
The third common reason people sell their home is that they spend way above their means and this usually gets them into a lot of trouble. This kind of trouble is similar to owing student loan debt because numerous bill collectors could put negative marks on your credit that could last years and years.
Here is another fun fact, did you know that over 36% of Americans actually spend amounts equal to their paycheck every week? This is actually the reason why most Americans have to live paycheck to paycheck and it is definitely a good reason to save when you can, and not spend when you can’t.
This reason is actually tied with number three in terms of how many people report selling their home due to divorce and marital issues. When two people get divorced they often find it impossible to own the home by themselves because they simply don’t make enough money to afford all the expenses that come with owning a home.
This combined with their other added monthly living expenses can make home ownership impossible for just one person and the former couple is usually forced to sell and split whatever they receive from the sale. It is definitely unfortunate when this happens, but it is facts.
5. Relocating For a Job
The fifth and final reason on today’s list involves relocation. This is definitely the least common reason people sell their home and most do it because the decision making has to be done very quickly and they don’t have time for other options like keeping the house and renting it out. On a side note, in most cases renting the home is out of the option because it would be too costly to hire a property manager to make sure the rental property is kept in proper working condition. In many areas, you can’t choose what you want to rent your home for anyways due to city laws and local ordinances.
We hope you enjoyed our article on 5 common reasons people sell their home. Visit us weekly to find out more information on a wide range of real estate topics. We look forward to seeing you again soon!