Every year, numerous Massachusetts residents find themselves in precarious financial positions that make it difficult for them to make their mortgage payments. Rather than lose their home to foreclosure, which can have a devastating impact on one’s credit score, there are options out there that would allow them to keep their homes or walk away with minimal effects. Here are a few options open to you if you find yourself in this position.
Many lenders are willing to work with people who are struggling to make their mortgage payments. Some will even go so far as approving loan modifications that adjust the terms and make the payment amounts more affordable for their borrowers. Just pay attention to the new terms before signing anything, because they may not be in your best interest in the long-run.
If you fail to achieve a loan modification, you could always consider selling. In today’s market, many homes are going for more than the asking price. However, if you owe more than your home is worth and you can’t find a buyer to pay enough to satisfy your mortgage debt, you may need to ask your lender if you can do a short sale — meaning they will agree to accept less than the full value and write off the rest.
Deed in lieu of foreclosure
Rather than losing a home to foreclosure, you could always opt to do a deed in lieu of foreclosure. This means you walk away. You sign a form giving the home back to the lender in exchange for release from your mortgage debt obligation. This is generally considered a last resort option and just allows you to avoid the hassle of the foreclosure process.
No matter which of these options you choose, it will require negotiating with your lender, and that may not be something you feel you can do on your own. It can be intimidating. Thankfully, you don’t have to. An experienced real estate law attorney may be able to help you. To learn more about how legal counsel can be of assistance as you figure out what to do with your home, please take a moment and visit our firm’s website.