Leasing as an Alternative to Foreclosure
This is probably one of the most least-considered options for Homeowners facing Foreclosure. It seems that when things become dire, Homeowners automatically begin to think "SHORT SALE" when they can't sell their home the "old-fashioned" way, because they owe too much! Fortunately, there IS another option!
If you CAN'T pay your Mortgage, find someone else who CAN! Hiring a Real Estate Agent to help you rent out your home is one of the easier things you can do to avoid foreclosure! In lieu of their primary residence becoming a rental property (and secondary source of income), a Homeowner can downsize to make their situation less burdensome, thereby avoiding foreclosure!
It's understandable that a rental payment from a tenant may not completely make up for an existing Mortgage payment, but it will, at the very least, reduce it to something more manageable for the Homeowner! Not only this, but having a renter removes the burden of utilities and other miscellaneous bills for the home. At the very least, it's a temporary solution until a more long-term one is presented! And, as always, this is under the assumption that you have a reliable tenant!
But BE CAREFUL! A Homeowner should NEVER sign a lease to a tenant unless they have secured another means of housing! You would think this is common sense, but mistakes DO happen!
For the Homeowners that aren't privvy to the world of being a Landlord, there are Property Management companies that will oversee the maintenance of your property for you! Of course, this will come with a nominal fee from every rental payment, but, again, it's all about reducing YOUR burden! In my office, we have an affiliated Property Management department that will provide their services to Lessors for 10% of every rental payment.
Foreclosure is an UGLY thing, and it's something that EVERY Homeowner should avoid at all costs! Be aware of your options!! Consult a Real Estate Agent!! They will help you decide the BEST course of action to take!! Remember, in the world of Foreclosure, it's always a race against TIME!
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