Avoid Foreclosure with These Alternatives Part 2
Life has a way of changing, and at times, those very changes can greatly impact different areas of your life. For example, a job loss can affect your ability to pay your mortgage. Unexpected life changes are major contributing factors to foreclosure. Planning ahead can help you avoid foreclosure, but if you do find yourself in a potential foreclosure predicament, be sure to explore the five options in this section and part one of our article.
Just as you can request a forbearance on your educational loans, you can request a forbearance on your home loan. A forbearance is a temporary solution to your financial woes. This agreement between you and your lender allows you to either cease mortgage payments or pay a reduced portion of your regular payment for an agreed upon period of time. Once the period ends, you must resume your normal mortgage payments.
As a cash-strapped homeowner, you may even consider selling your home. You will likely ask “Who can buy my house fast Baltimore, MD?” This will probably lead you to pursuing a short sale with your lender. A short sale has to be approved by your lender because in essence you are requesting to sell the home for less than what you owe. Avoiding the expensive legal foreclosure process is usually the lender’s incentive for agreeing to a short sale. The short sale process can be long and arduous and, depending on the variables, range between three to six months. Contrary to what some think, a homeowner cannot just hand over their house keys and walk away. This is legally considered a “Deed-in-Lieu” which is a different process where the lender agrees to accept the deed to the property. Be careful with a deed in lieu since a lender can still pursue the owner with a deficiency judgement holding them responsible for the remaining debt.
Sell Your Home to 365 House Buyers
Every option listed in this article has pros and cons. Furthermore, some homeowners may actually have less options than these considering the requirements they must meet to even be approved by their lender. Research these alternatives further and evaluate whether they will work for your situation. If after inquiring further with your lender you find yourself asking, “Who can buy my house in Baltimore, MD?” give our office a call to see how we can help you solve your problem.