Sell Your Home

There are many different ways to avoid losing a home to foreclosure. Let’s take a look at five different ways that in selling your property in opposed to foreclosure.

Are you currently facing-“negative equity” where you owe more than your house is valued at? Presently your burdens of debt are high; you’re facing long term financial troubles. Maybe your household income has been cut greatly.

There’s what we call a “Deed-in-lieu” of foreclosure. This works by the homeowner avoiding foreclosure and agree signing the deed over to the lender and agrees to move out of the house. With this type of agreement between homeowner and lender, both parties benefit.

This option benefits the homeowner with the relief of further loan obligations and delinquent payments. The lender benefits include time management and legal fee costs saved. It’s an all around win-win scenario for all parties involved. This type of sale is also referred to as a homeowner selling the home to the buy and is not obligated to pay off the existing mortgage.

Or, the buyer is purchasing property “subject to” any previous existing loan.

In this case the purchaser agrees to bring the current mortgage payments up to date. Than continue the mortgage contract according to its terms until it is paid in full. Or the purchaser refinances or sells to a third party.

Using the “subject to” selling option to avoid foreclosure can be easy. It can rescue your credit with current mortgage payments and selling your property. Plus the time frame from sale to closing is reasonably short. Subsequently, there is a drawback, even though someone else is now living in your house and paying that bill; the mortgage is still on your credit report. And you don’t own it.

If the new owner doesn’t make the payment, you will still have to make it just to save your credit. A “subject to” sale has another problem. If you have a “due-on-sale” clause in your mortgage contract, a “subject to” sale would be in violation of contract. A clause “Due-on-sale” gives the lender the right to request payment in full if the borrower doesn’t hold up his end of the contract.