There is much to discuss … talk with a competent real estate professional PLEASE! Don’t assume anything.
9 Ways to Avoid Foreclosure:
REINSTATEMENT: Bring the loan current
FOREBEARANCE: Temporary repayment plan from your lender
REFINANCE: New loan with reduction in monthly payments
LOAN MODIFICATION: Modify original loan terms with your lender
SELL THE PROPERTY: Use equity (excess funds) to payoff or pay the difference
RENT THE PROPERTY: Must make loan current
SHORT SALE: Negotiate with bank to accept sale under loan amount
DEED IN LIEU OF FORECLOSURE: “friendly foreclosure”
BANKRUPTCY: Will stall foreclosure but not prevent it
Even the deed in lieu of foreclosure is a foreclosure on your credit. If you are ready to move out/move on, then you’ve just got to try the short sale option first …. it will cost you nothing out of your pocket to get it going and the short sale is soooo much less derogatory on your credit report!
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