In 2011, at least 166 Somerset County properties were bank-owned, sold “short,” or foreclosed. This is just a fraction of what’s going on all across the nation. As Vohnie Lemon of our firm, Harold Shepley & Associates, told the Daily American, you don’t necessarily have to lose your home to foreclosure if you can no longer pay your mortgage.
How do you avoid foreclosure? You can’t just ignore it. You need to work with your lender. The bank doesn’t want to go through foreclosure any more than you do. Instead, you can partner with your lender on a short sale or deed-in-lieu of foreclosure.
With a short sale, you get the lender’s permission to sell the house for less than you have left on the loan
With a deed-in-lieu of foreclosure, you give your home to your lender in exchange for cancellation of the loan
Both of these avoid putting a foreclosure on your credit report. Lemon points out, though, that you really should have a good relationship with your lender in order to make one of these options work. In either case, your home must have been on the market for a minimum of 90 days before your lender will be agreeable. Also, ensure you do your research, as there are tax implications for each option.
If you’re having money troubles and seeking advice, look to the full service debt relief law firm of Harold Shepley & Associates. We can provide you with all of the information you would need to make a decision about your future. Contact us today to find out more information on your debt relief options.
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