just moved from CA to SC & HATE IT.bought a house. when can we sell w/o paying lg penalties?

Question

bought a house in SC due to low cost of living. sure not in KS anymore! we r 2 retired folks, just put over 20K in the house for upgrades & remodel(what a mistake that was). not to old to work I'm 58 and other 1/2 is 61.any thoughts of how to get out of here w/at least what we have put into the house & move back closer to CA, like NV or AZ? please help!!!! I'm going crazy.........

Answer 1

The only penalties I can think of may come from the mortgage you originated. Check your documents, and or with your lender to see if you have a pre-payment clause that may be due if you sell before a specified time. Even if you did not put any additional upgrades in your home it usually takes about 2 years of ownership before you can recoup your expenses. Your best option may be to rent the property out with an option to buy. Buy doing this you may find a tenant that will take care of the property because they will possibly buy at the end of the term. Another plus is that you will collect higher rent for this option. In addition, you may save some selling expense at the end of the term. Be sure to use an attorney to assist you. Also be cautious about using a rental agency to manage your property. Do it yourself if you can. Using the rent with option to buy method can get you the time you need to be able to recoup your expenses.

Answer 2

Pre payoff penalties are likely what you are asking about so heres what they are, and why they are there. A mortgage loan that has a fixed then adjustable feature will have a pre pay to insure it has either some shelf life, or instant profit for the bank. Any loan fixed or otherwise will have a pre-pay also if the lender is receiving rebate. Generally the prepay will not allow more than a specified amount of pay down per year during the pre pay term.
If you trigger a escalation clause the most often used penalty is 6 months interest on 80% of the original loan amount.

Answer 3

The first thing you are going to want to look at is your mortgage paperwork. Check to see if there are pre-payment penalties attached to your mortgage. If there are, you could pay thousands of dollars to get out of this house/mortgage. Perhaps you do not have pre-payment penalties, that would be a good thing. In a traditional transaction, you are going to be out whatever closing costs you had, period. Since you just purchased, it is unlikely values have gone up to recoup any expenditures you had. Perhaps you could look into fixing some things you hate and make the house livable for awhile.

Answer 4

Why not rent the place out? I believe SC is a very hot housing market, so you could easily rent it for more then your mortgage payment, hold onto it for a few years and then sell it when you are of retirement age to avoid some of the taxes possibly.

Answer 5

Specifically it is the Promissory nNote that stipulates the terms of your loan, at the end of the "NOTE" you should have a section called pre payment clause or rider. This will tell you if you have a pre pay penalty and how long it is until you can get out without a penalty.

Answer 6

Yikes ok first get an experienced licensee in your area to give you some guidance and what you can expect in your particular area's selling market it might be that it will be on the market for some time. As to taxes here are some links that might help you
IRS: Selling your Home Publication: http://www.irs.gov/publications/p523/index.html and http://www.irs.gov/publications/p523/ar02.html
IRS: Home Sale Exclusion rules, publication: http://www.irs.gov/newsroom/article/0,,id=105042,00.html
IRS: Tax information when buying a home: http://www.irs.gov/publications/p530/ix01.html
IRS: Deductible costs when purchasing real property:
http://www.irs.gov/publications/p551/ar02.html#d0e2000
IRS: http://www.irs.gov/
IRS: 3.6 Itemized Deductions/Standard Deductions: 6. Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses): http://www.irs.gov/faqs/faq3-6.html
SOCIAL SECURITY: Receiving special payments (income) after you retire for work done before you started getting your social security:
http://www.socialsecurity.gov/pubs/10063.html
Social Security: All publications by the department: http://www.socialsecurity.gov/pubs/englist.html
Given your strong desire to move if the agent that is helping you sell the property can not sell it, you might want to try this (my favorite link)
Burying old St Joseph to sell your home: http://www.snopes.com/luck/stjoseph.asp
Happy Holidays and Buena Suerte

Answer 7

It depends on the market price of your upgraded house. For example, say you paid $200,000 for the house and put $21,000 into upgrades. If can sell it for, say, $240,000,000 and pay sales commission of $14,400 (6%) and closing costs of perhaps $4.500, you break even, not taking into consideration the cost of moving to SC and back to AZ. Since you would be making no profit on the sale, the transaction would not be subject to income taxes so you would not be penalized for the sale.

Answer 8

6 months

Answer 9

Look at your loan documents to see if there is a prepayment penalty

Answer 10

in your loan docs, there is a section specific to prepayment penalties.....IF you have one, it's usually 36 months......Next time you move......rent first!!!!