Ways to Save Your Home
If your lender refuses work with you, there are other options to stop the foreclosure proceedings. However, you must act fast and do some research to know which choice is best for you.
- Sell Your Home – Speak with a professional real estate agent who is familiar with the home prices in your area so you can get a correct market value. Although listing with a discount broker might sound like a practical way to save money, call around to different agents and find one with strong marketing and sales experience. A discount broker will not save you money if they can’t sell the home before the foreclosure process ends.
- Will Your Lender Consider a Short Sale – If your home is worth less than what you owe on the loan, you might be a contender for a short sale. Basically, your realtor will need to talk with the lender to see if they would be willing to take less than the full amount due on the loan. Keep in mind that this DOES affect your credit just as a foreclosure would and not all homes meet the requirements for short sales.
- Sign a Deed-in-Lieu of Foreclosure – This basically means the homeowner is signing the deed to the home back to the lender, thus closing out the loan and stopping foreclosure proceedings. Again, this will affect your credit the same as a foreclosure would but you might even be able to discuss terms to stay in the home or rent the home for a lower price until the home is sold.