Because of the current housing and mortgage environment, most people who are faced with foreclosure, have been trying to sell their houses but can’t sell for enough to pay off their mortgages. Meanwhile, their debt situation keeps getting worse.

This situation isn’t good for you, and it’s also not good for the bank. Foreclosing on your home may cost the bank more than $50,000 in legal fees and other costs. With the foreclosure situation so widespread, many banks may be willing to let you sell your house for less than what you owe and forgive the rest of your debt.

While a short sale won’t allow you to keep your home, it can substantially reduce the damage to your credit. If your mortgage lender agrees to a short sale, the process is often very long. If your need for debt relief is urgent, a short sale may simply take too long. Also, short sales are not usually available if you have a second mortgage.

Another possibility to limit the damage to your credit when foreclosure is inevitable is what’s called a “deed in lieu of payment” transaction. Rather than forcing the bank to foreclose on you, the bank agrees to let you turn the property back over to them voluntarily. This saves the bank legal and processing costs and lets them begin trying to sell the house right away.

There are several considerations to consider. If you have any questions or for a complementary consultation, please don’t hesitate to contact our experienced team of associates today to learn more about how we can help you. Call 305.595.4011 or Email us