Foreclosure alternatives
Has your home become too much of a financial burden? If you owe more on your home than what it's worth in today's market and can no longer afford your mortgage payments, don't assume that you're destined to have your home go into foreclosure. Whether you want to stay in your home or leave it, there are options available to you.
It's best to avoid foreclosure, if possible. A foreclosure is the legal process where a mortgage company obtains ownership of a home after the homeowner fails to make payments and has violated the terms of their mortgage. There are several negative consequences to foreclosure, including eviction and damaged credit, both of which can impact the former homeowner's ability to rent or buy a new home for several years.
If you've decided that you want to leave your home, there are a couple of different options that will help you avoid some of the negative consequences of foreclosure. First, you can try to sell your home as a short sale. A short sale happens when a home's sales price is insufficient to pay off the total mortgage(s), closing costs and any other lien balances owed on the home. A short sale will eliminate or reduce your remaining mortgage debt, and you may be eligible for relocation assistance. By undergoing a short sale, you'll typically start repairing your credit sooner than if you go through a foreclosure.
A foreclosure is the legal process where a mortgage company obtains ownership of a home after the homeowner fails to make payments and has violated the terms of their mortgage.
With real estate agents who specialize in selling short sales, Edina Realty has the expertise to guide you through this oftentimes complex transaction. We can help you determine whether you might qualify for a short sale and protect your interests as a seller. Learn more about selling a short sale home.
Another option is a deed-in-lieu of foreclosure, which is when you transfer the ownership of your property to the owner of your mortgage in exchange for a release for your loan and payments. Mortgage servicers and investors observe their own guidelines under the federal requirements to determine how to implement the program. For more information about your options, contact your mortgage servicer.
If you want to stay in your home, there are other resources available to you. The government has a program called Home Affordable Modification Program (HAMP) that allows some homeowners to have their mortgage modified to more affordable terms.
Regardless of the option you choose, every lender's standards are unique when it comes to foreclosure and foreclosure alternative programs. If you are having trouble paying your mortgage, contact your lender to see which options might best fit your needs. The sooner you contact your lender, the more options will be available to you.
IMPORTANT NOTICE: Edina Realty is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan
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