Are you currently at a financial hardship, and possibly going into foreclosure? Not sure of your options? Well the good news is there are ways that you can save your home and your credit, and there are people out there who can help. Selling your home to avoid foreclosure is one way to get out of the hole.
You are probably asking how you can sell your home to avoid foreclosure if you are already up side down on your mortgage. Here is how: first off you need to face the problem head on, and not ignore notices from your lender. Contact them as soon as possible to avoid the foreclosure of your home, and let them know of your hardship. Depending on your situation, they may allow you a repayment option, most likely if you are upside down on your mortgage, you are in no position to be put on a payment plan. The best option would be to sell your home to satisfy the debt and avoid foreclosure.
A short sale is the best way for you to save your credit and avoid foreclosure. A short sale is when the bank and or lender agrees to sell your home for less than the amount that is owed on the note. Keep in mind though, you will not be making a profit on the sale of the home, but you will be relieved of the outstanding debt. You must be able to sell your home in 3-5 months, your lender will provide you with an appraiser to see if the home meets certain guidelines, and you must be at least 2 months delinquent on your mortgage payments. Short sales are hot on the market right now, so it wont be too long before an offer is submitted. Once an offer is submitted to the bank, the bank will ultimately decide whether it is close enough to the asking price. The bank needs to make sure that they are making the most money possible on your home, so that they are not left with a debt in the end. A good offer usually comes $25,000 within the asking price.
Selling to avoid foreclosure will not save your home, but it will not hurt your credit as much as it would if the house went into foreclosure. In return you will be able to purchase something else in the near future once your back on your feet. Speak with your lender or Real Estate agent today to see how you can get started on this process.