Some other alternatives to foreclosure that may also help you
- Rent the Property: Sometimes you may be able to move somewhere with cheaper rent, and then rent out your home for the price of your mortgage payment, or even with a slight difference you’d be liable for.
- Loan Modification: Your lender may be willing to work with you on some type of program to modify your loan. This is a great first step to avoiding foreclosure, and may be able to let you keep your home. Contact your lender now to talk about your options regarding a Loan Modification.
- High LTV (loan to value) Refinance: This is a refinance that allows up to 125% of your home’s equity to be taken into account. Speak with a mortgage professional for more information on this program
- Short Pay Refinance: This is a program that’s based on you qualifying for a new loan through the FHA guidelines. Speak with a mortgage professional for more information on this program.
- Bankruptcy: This does not usually stop foreclosure, however, it does postpone it and reorganizes your debt to help give you the ability to make your payments. Always speak with an Attorney first when contemplating bankruptcy.
- Deed in Lieu: This is an accelerated form of foreclosure that occurs when the borrower gets the lender to accept a deed to the property and stop the foreclosure process.
- Short sale: A is where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency.
These are just a few suggestions that may help you if you're facing foreclosure. Please note that you should always speak with both an Attorney and a Tax professional before pursuing a short sale.