Short Sale: Consider Giving Up Your Home Without Foreclosure

Unfortunately, in some cases you will not be able to resolve your pending foreclosure through the prevention programs that your lender may have available. If it is possible, you may want to try and sell your home first as your lender may in most cases postpone the actual foreclosure in an event that there is a pending sale on the home. In which case though, you will be required to pay off the remaining balance of the mortgage as well as any fees that you may have accrued and the costs associated with the sale of the home

This will help you to avoid any major negative points on your credit record which would occur in the event that a foreclosure of the mortgage is finalized. This quick sale is known as a short sale and in the event that your lender allows it, you should make every attempt to do so. In many cases if it is allowed, the lender will forgive the difference between the sale and the remaining balance of the loan without any adverse affects to your credit rating.

You may also as one of the very last results, actually give your home to the lender. In this instance, a Deed in Lieu of Foreclosure will be issued on your credit rating but this is definitely now where near as bad as an actual foreclosure. Furthermore, by going this route you are giving up any claim to the remaining equity built on the home and you may also acquire some tax liabilities associated with any possible shortfalls depending on how much debt that the lender chooses to forgive.

It is important to remember that you should never go through the foreclosure process on your own. Among many options to choose from, one of the best is asking for assistance through a housing counseling agency. This agency will be able to assess the situation and assist you in making the right choices which are good for you and your family. Furthermore these agencies usually do not charge a lot of money for their services,

Some agencies though will only work with you if your loan is through FHA lending services. It is important to ask them whether or not they work with your lender to ensure that you are not paying for an agency which cannot help you. There are also a number of great ways of locating these agencies such as going through HUD or other government agencies associated with housing.

Above all simply remember that you should make every attempt to save as much of your credit rating as you possibly can. In the event that you do loose your home, it is better to have a higher credit rating so that you can purchase another home later once your household finances return to a stable enough level in which you are able to afford another mortgage.

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