If you come to find that you are no longer able to make your regularly scheduled mortgage payments, you have a few options.
While selling your home is something to consider, there are many reasons why this may not work. This leads many people to consider a short sale or foreclosure.
With foreclosure, you more or less let the lender take back your home. You don't do anything to save the property, knowing that the lender will eventually repossess it.
With a short sale, however, you work with the lender to sell the home. The agreement is simple: You request to sell the home for less than what you owe, and the lender agrees to this without the requirement of paying the difference.
Some of the many benefits of a short sale over a foreclosure include:
-- Less impact on your credit score. A short sale can affect your credit score, but the impact won't be nearly as bad as with foreclosure.
-- Saves both parties money. With a short sale, you can save yourself, as well as the lender, a lot of money.
-- Peace of mind. A short sale gives you the opportunity to do your best in making things right. This may not be the ideal situation, but it's better than simply walking away from the home.
If you are in over your head and your mortgage continues to weigh you down, it's time to learn more about a short sale. This may be the best way to relieve yourself of this burden once and for all.
Source: Absolute Consultant Group, "Benefits of Short Sale over Foreclosure," accessed July 05, 2017