For homeowners who are in a position where they need to sell as opposed to wanting to sell due to job loss, divorce, relocation, medical expenses, etc., there may be options that you can pursue with your lender.
- The first option is a Loan Modification.
The government has tried to come up with numerous programs to help homeowners in trouble, as long as it’s a temporary situation and not a permanent one.
Loan modifications should not cost you anything.
This is something you can work on with your bank for free. Call your lender and ask them what are your options.
- Another option is a Forbearance agreement. This is when a lender works out some type of a forbearance agreement to have you make up any missed payments through some type of a payment plan. This is ideal for homeowners who had some type of one-time event or expense that caused them to miss payments. Now they can begin making those missed payments up in order to avoid foreclosure.
- A third option is a Deed-In-Lieu.
This is usually your last option before you get foreclosed on. Typically, deed-in-lieu option cannot be pursued until you have exhausted all other options.
You will have to qualify for a deed-in-lieu. This usually means you must have tried short selling first; you will need to submit proof of that when sending in all of your other financial documentation.
- The final stage in any hardship where you are trying to sell your house with little to no success is the foreclosure process. Foreclosure is the atomic bomb of credit catastrophes, and should be avoided any way possible. If you are facing foreclosure, we can usually get it stopped, sometimes even days before the auction.
Not all banks will accept our paperwork or offers that are close to the date of foreclosure anymore, so it’s wise that you take proactive measures early on.