Homeowners who are having difficulty making their monthly mortgage payments need to consider what to do with their homes. Should you try to keep your home even though you can’t afford the mortgage payments, or should you leave your home and start over? Sometimes it’s difficult to detach yourself emotionally and make the right financial decision.
If you do choose to leave your home, Don’t just walk away from it. You should do everything possible to avoid foreclosure; luckily there are a few ways that you can vacate your property and transition into a more affordable housing situation. The sooner you make this tough decision; the better off you will be in the long term.
A short sale is the process of selling a home for less money than the remaining balance on your mortgage. If your lender allows you to short sell your home, you can pay off most or all of your mortgage balance in the process.
- Reduce your mortgage debt or eliminate it altogether
- Relocation assistance
- Much less damage to your credit than foreclosure
- Purchase another home in 2 years as opposed to 7 years in foreclosure
A Deed-in-Lieu of Foreclosure is when you transfer your property ownership and title to your mortgage holder in exchange for releasing you from your mortgage obligations.
A Deed-In-Lieu is a foreclosure alternative and is a consideration when:
- You cannot refinance or modify your mortgage
- You are dealing with a long-term hardship
- You are currently behind on your monthly mortgage payments
- You owe more on your home than it’s current market value
- You either don’t want to or are unable to sell your home
- You cannot afford your home and are ready to leave