Are you in need of getting out from under a mortgage?
If you need to get out from under your mortgage for any reason, you still have options that can keep you from defaulting and having your home foreclosed on.
Since the financial crisis in 2008, many people have faced home foreclosure. When you are unable to make your mortgage payments, it can be an incredibly difficult time for you and your family.
It’s essential that you do your research and seek professional advice before making any major financial decisions. Here are 4 options to consider before moving forward.
1) Refinance or Loan Modification
Call your mortgage lender and see if you qualify for a loan modification.
A re-modification will permanently restructure your loan by extending the loan term. This extension will lower your monthly payments and allow you to keep the home or give you more time to put it on the market.
Refinancing a home often comes with a “trial period” where missed payments will be immediately reported to the credit agencies. If you choose this option, make sure you can afford the new payment.
2) Consider a Short Sale
In some cases, you can negotiate a short sale with your lender. In a short sale, you get the bank’s permission to sell the house for less than the balance that is due on the mortgage.
Sometimes the bank will accept the lower sale price and forgive the debt. In other cases, you will still be responsible for the difference between the amount owed and the sale price. This can still be advantageous because you will owe far less than the principal on the mortgage.
You should always check with a lawyer before going through with a short sale.
3) Negotiate a Deed-in-Lieu
A Deed-in-lieu of foreclosure is another way to get out from under your mortgage. It is essentially an agreement with the bank stating that you will give them the deed to the house in exchange for forgiving the debt.
A deed-in-lieu is beneficial to both the homeowner and the lender for many reasons. Often the lender will get more out of a deed-in-lieu than through a traditional foreclosure. Plus, the process is much quicker.
For the homeowner, a deed-in-lieu has a less negative impact on their credit and results in no more money owed to the lender.
Remember, your lender is not your enemy. Just like you, they are looking for ways to resolve the situation in the best possible way. The first step when you are facing foreclosure should always be to communicate with your lender.
4) Sell to a Cash Home Buyer
Fast cash buyers are an option when you need to get out of your mortgage and sell your house fast.
These are individuals or groups of private real estate investors who have the capital to make quick cash deals and buy your home immediately.
Though you will get less than the full retail price for your home, selling to a cash home buyer allows you to sell the house in as little as a week. Plus, they buy homes as-is. That means you won’t be subject to appraisals and inspections, and you won’t need to make any repairs.
Depending on the equity in your home, you might be able to get a quick cash offer that allows you to pay off the bank entirely and move on to the next chapter of your life.
You can get a cash offer for free in less than 24-hours, so it doesn’t hurt to explore this option. If you’d like to receive a fair cash offer today, just click here.