Additional Foreclosure Avoidance Options?

Additional Foreclosure Avoidance Options?

Rent the Property. If your local market conditions will allow you to rent your home at or above the cost of your mortgage, renting the property and using the income to pay your mortgage could be an option.

Deed-in-Lieu of Foreclosure. Also known as a “friendly foreclosure,” a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the contentious foreclosure process. Lender approval is required for this option, and the homeowner must vacate the property at a designated time.

Refinance. If you have sufficient equity in your property and your credit is in good standing, you may be able to refinance your mortgage at today’s historically low interest rates.

Service Members Civil Relief Act (military personnel only). If a member of the military is experiencing financial distress due to deployment, and that can show that their debt was entered

into prior to deployment, they may qualify for relief under the Service Members Civil Relief Act.

Sell the Property. Homeowners with sufficient equity can list their property with a qualified agent who understands the local foreclosure processes and is able to close a deal prior to bank foreclosing on the home.