Do I have to sell my property?
Do I have to Sell My House?
Often times circumstances can arise that cause a homeowner difficulties in meeting their monthly mortgage requirement. Maybe you have been laid off, your hours have been reduced, a family member has become ill, or you are in the process of a divorce. All of these events and so many more can cause financial hardship. Your home is important to you and you would like to stay there, but you feel like you have to sell to get out from under water. This may not be the case. Even if your loan modification has been denied, you have options. The first thing you should do is educate yourself on these options. Maybe you can work a loan modification for long-term relief or a forbearance for short term relief because your circumstances may change soon. If these options are not right for you or you do not qualify for them, it may be time to sell.
Steps to Take
The first step you should take is contact your lender to let them know about the financial difficulties you’re experiencing. The lender can work with you and help to explain your options. Examine your options carefully as each option can have long-term effects. You can stay in your home if a loan modification or forbearance is right for you. Prepare your financial information and a hardship letter, explaining the circumstances that put you in financial difficulty. If you prepare this paperwork proactively, you will be ready when the lender sends you a packet application for a loan modification, forbearance, short sale or deed in lieu of foreclosure—even if you’ve had a loan modification denied in the past. Being prepared is the most important factor during this time. If you want to say in your home, be sure to exhaust your options with your lender.
The Last Resort
If you have exhausted your options to qualify for an assistance program that lets you keep your home, it may be time to sell. This is not necessarily the last resort, but may be the last resort option to still hold your credit in somewhat of a better standing than a foreclosure. Market your property for sale with a realtor and work on finding a homebuyer to purchase your property at a sales price that is less than what is owed after customary closing costs. If the efforts to sell the property as a short sale fail for some reason, then the very last resort is a deed in lieu of foreclosure to try to save your credit score. In this case, you will deed the title of your property to your lender in exchange for the release of your debt obligations.
Remember, if you lose your home because of an imminent foreclosure, you will have a chance to start over. We can HELP you start over and guide you through the application process for various hardship programs offered by your lender. When you’re ready to discuss your options, call at (888) 866-3439 or contact us today.