Struggling to Pay Your Mortgage? Why You May Want to Sell Your Home ASAP

The longer you wait, the more risk you take on.

These days, inflation is driving living costs upward across the board, and that's put a strain on a lot of people, homeowners included. And so if you're having difficulty keeping up with your mortgage payments, you're no doubt in good company.

Unfortunately, mortgage rates are so high right now that refinancing won't make sense for most borrowers. So if you're having a hard time managing your current mortgage payments, you may not have many options for lowering them unless your lender is willing to work with you (it's a conversation worth having, but it may not be successful).

One option that is on the table, however, is selling your home. Buyer demand is very strong right now, so if you list your home, there's a good chance you won't struggle too much to find a buyer -- especially if your home is in decent shape and your listing price is reasonable. And that way, you can move to a less expensive home, build up some savings, and avoid the stress of cutting it close on the missed mortgage payment front.

But if you're seriously contemplating the idea of selling your home due to affordability issues, it pays to do so immediately. Waiting even a few months could make selling your home more difficult, and it could make your financial situation exponentially worse.

One move you don't want to delay

The decision to sell your home isn't one to take lightly. But if you've come close to missing a mortgage payment on numerous occasions this year, then it's a route you might need to take.

But if so, it pays to list your home soon -- perhaps even before 2022 comes to an end.

The reason? For months, financial experts have warned that a recession has the potential to strike in 2023. If that happens, it could do a lot of things.

First, it could result in you losing your job. And if that happens, you'll really struggle to make payments on your mortgage. Missing those payments, however, could damage your credit, and that alone could bring about serious repercussions.

Furthermore, a recession could cause home buyer demand to shrink. If a lot of people lose their jobs, they'll be unlikely to qualify for a mortgage, or unlikely to want to take one out, even if they somehow can qualify (say, based on a spouse's income alone). Plus, if economic conditions decline, even would-be buyers in solid financial shape may decide to play it safe and put their plans on hold.

All told, if a recession strikes in 2023, it could not only impact you personally, but also, narrow the general home buyer pool. And that's a situation you'll want to get ahead of.

A tough but necessary choice

Saying goodbye to a home you enjoy living in is not an easy thing to do. But if you can admit that your mortgage has become unaffordable, then it's a financially sound decision to make. And the sooner you're able to get moving with your listing, the more likely you'll be to find a buyer, command a sale price you're happy with, and move on to a new housing situation that's a better fit for your finances.