Your home is your most valuable asset, and it is also where you greet your family at the end of the day and lay your head at night. For many people faced with overwhelming debt, keeping their home is the number one priority. However, if you have been unable to make your mortgage payments, you stand a very real chance of losing your home to foreclosure. But, there are options and they should be explored in detail if you are serious about saving your home.
Two ways to avoid foreclosure include:
- Offering a short sale to the lender. This type of transaction is one where the lender agrees to take less than what you owe for the home, and requires that the home be sold to a third party for the lesser amount. This is an attractive option if your home has lots of curb appeal and will sell easily, but if you live in an area that has sluggish sales this might not be the best option for you. And, the ultimate decision as to whether a short sale is possible is up to the lender, which means you will be required to engage in negotiations with your mortgage holder. The back and forth tug of war some lenders play when trying to agree on a short sale can take a long time, and can also take an emotional toll. There may also be tax implications for participating in a short sale, so be careful! Before attempting to negotiate a short sale, contact a knowledgeable debt relief attorney for help.
- Offering a deed in lieu of foreclosure. Some lenders will allow you to sign the property back over to them instead of filing a foreclosure action against you. There are certain title requirements that must be in place before a lender will agree to this course of action, so it is wise to have a qualified attorney take a look at your particular situation before making this offer.
Another option available to you in order to avoid a foreclosure includes filing for bankruptcy. If you are interested in staying in your home this might be the best option. And, depending on the type of bankruptcy you qualify for, you may be able to negotiate lower payments or a lower interest rate and memorialize that agreement in a reaffirmation within your bankruptcy case. For more information about avoiding foreclosure and what will work best for you, call us.
For more information about foreclosures, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.