.....This Mortgage... Cont'd

I’m Ready to Rent.......

If you can’t afford to keep your home, the next logical thing is to sell it. In light of the economy this may take a while, but here are some other options to ask your mortgage company about as well:


Short Sale: This option is available if you can’t sell the home for the amount you owe on it. Your mortgage company may accept less than the amount owed. Financial help may also be available to pay other lien holders and/or help towards some moving costs. You may qualify if:

1. The loan is at least 2 months delinquent
2. You (or your real estate professional) can sell the house within 3 to 5 months
3. A new appraisal (obtained by your lender) shows that the value of your home meets HUD program guidelines

Assumption: A qualified buyer may be allowed to take over your mortgage, even if your original loan documents state that it is non-assumable.

Deed-in-lieu of Foreclosure: As a last resort, you "give back" your property and the debt is forgiven. This will not save your house, but it is less damaging to your credit rating. This option might sound like the easiest way out, but it has limitations:

*You usually have to try to sell the home for its fair market value for at least 90 days before the lender will consider this option

*This option may not be available if you have other liens, such as other creditor judgments, second mortgages, and IRS or state tax liens