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Possible House Buyer (Maybe)

July 23rd, 2013 at 08:46 pm

So one of my neighbors out at the old house has some family in Michigan who are looking to move to our county. He asked if he could video the outside of the house, the yard, and the inside of the house to send to them. We let him and he sent it to them and they really liked what they saw. Proximity to him is key in their decision.

Of course they want to wait until it is finished, which will likely be another couple of weeks or months considering, but it is possible they will want to buy it. Man, if I could avoid the whole putting it on the market process entirely and not have to worry about realtor commission, that would be wonderful. Mom told him we are wanting $150K and they seemed okay with that. Of course I am only wanting $100K, but if they'll pay $150K...

I am not counting any chickens before they are hatched though. Sometimes it seems like things do work out after not working out for a long time. It would be nice, but I'm not holding my breath. If we could actually get $150K we could put down an $80K down payment on a new house, pay for the remodel, and pay off the van.

Part of me is getting anxious about the mortgage and thinking about emptying out savings to pay it down as much as possible. Which is stupid, I know, but the urge is really strong. We could pay off $10,000 by the end of the month if we did. It would leave us with $1300 which I think we could pay off by the end of July if we really, really scrimped, and August for sure. Of course that would leave us with no emergency fund. But it would leave us with no debt but the van loan, too.

And we do have credit cards if a real emergency came up. And I'd slam as much money back into the EF and all of the funds as I could as soon as it was paid off. Having it free and clear when we sold it seems like a better position to be in.

What do you guys think? Should I stay the course and not empty out my savings, or should I go for it and pay off the mortgage ASAP? What really makes sense here? I need some sensible advice.

6 Responses to “Possible House Buyer (Maybe)”

  1. FrugalTexan75 Says:

    That would be great if it works out with the potential buyers!

    As far as paying off your mortgage .. personally I would not do it. Relying on your credit card balances as your EF can be such a slippery slope. Plus, not every emergency can be paid for with credit cards, not to mention that if you did have to use them in an emergency, they might not be paid off right away. Which of course would mean that your emergency would end up costing the beginning price +interest. Not worth it to me.

  2. CB in the City Says:

    I agree with Laura. Keep your emergency fund for emergencies; the mortgage will get paid down in due time. It doesn't sound like there is any particular advantage in paying it off sooner other than your desire to be debt-free -- which is admirable, but not worth emptying the EF.

  3. MonkeyMama Says:

    I don't think anything makes sense about paying off the mortgage right now. The others have said why.

  4. Beawealthywarrior Says:

    I would not wipe out my savings to pay off the mortgage. By doing that, I think you are inviting something unexpected to happen and then you will still be in debt. Be patient and in the end you will be glad you waited.

  5. baselle Says:

    I wouldn't because without an EF you'd have mentally set it up to link and 'depend' on the 150K on the possible house sale. You wouldn't have really, but its just asking for it from the fates.

  6. Kiki Says:

    I hope the sale comes through for you!

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