Losing a home is never easy and it is important for you to assess all your options before it is too late. Read on to see how to save your home today.
If your financial situation is too dire, then the lender will have no option but to propose the following liquidation strategies for you.
- Short sale
This is the process of selling the house through the lender at a price that is lower than the actual value of the home in a fast way. All payments received from this process will be considered by the lender as final settlement for the defaulted home loan.
In this option, the home owner voluntarily transfers ownership of the house to the lender to prevent further processing of foreclosure. There is no actual sale process but a simple transfer of property between the two parties.
Borrowers are allowed to transfer the ownership of the home and mortgage facility to another willing buyer. There is no exchange of money between the two but only a form of handing over of the property from one party to the other.
A home owner with a limited source of funding or reduced income and facing a foreclosure should consider the following options.
The home owner and lender enter into a special agreement that allows the foreclosure process to be held back while the borrower finds a solution for their financial situation.
This option gives the borrower a little more time to come up with the home loan balance and pay it off in lump sum.
- Loan modification
A loan modification service involves the borrower and lender restructuring the home loan so as to get new terms on payment, interest and duration. To get help in this matter borrower should take the help of a loan modification company.