When faced with property problems, most people just sit back and helplessly watch as the bank repossesses their home. What these people don’t understand is that there are many solutions out there that can help those who want to avoid the unpleasant experience of losing their home or listing their property quickly. Although these alternative solutions require you to lease your home or sell it to a third party, we guarantee you that they are much better than sitting back and waiting for the bank to come and repossess it. You should realize that when a bank takes your home, you not only lose your property but also lose your good credit score, which will make it hard for you to buy another house or access vital resources in the future. Here are the solutions.
Short Sale
Before we look at the advantages of this option, let us look at what it entails. When you go for a short sale, the lender agrees for you to sell your house for more than what is still owed on the house. A short sale is a good option for property owners who no longer pay their mortgage. This solution can also be used if your house is ‘under water.’ What do we mean by this term? This is a term used by realtors to mean a property that is worth less now than the amount the property owner borrowed from the bank.
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In most cases, when the lender agrees to go for a short sale, they clear you from paying the deficiency, which is the difference between the original mortgage amount and the short sale price. This means that you will walk away owing nothing to the lender, and you may earn or receive some money from the short sale.
A short sale is also good for you because realtors will handle the sale negotiations for free.
Fast House Sale
There real estate investment companies that can buy your house when facing foreclosure. Such corporations have ads everywhere, online and offline, saying that they are willing to buy properties no matter how they look or where they are located. Whenever we mention this solution, the first question we get is; are these companies legit? Yes, they are. These types of companies do not pay as much as regular buyers. Therefore, if you own a valuable property that is in excellent condition, you may turn a higher profit by selling your property to regular property buyers. However, selling a property facing foreclosure to regular people involves a lot of paperwork and intricate processes that put of a lot of buyers. Real estate companies, on the other hand, have extensive experience and you can sell your property to them with minimal hassle.
Lease Option
This option involves leasing your house to a real estate investment agency. The house remains in your name, but you will not be able to stay in the house or have much control over it. The real estate investment agency will take full responsibility for paying the mortgage. If you want to go for this option, ensure you conduct research to ensure you are getting the best possible deal.
Are There Other Solutions?
Yes, there are other alternatives. For instance, if you are unable to pay your monthly mortgage payments, you can visit the bank to see if you can renegotiate the terms of the loan. While not all banks agree with this, some banks are willing to reduce monthly payments and extend payment time.
You can also turn the property over to the lender while you continue to stay in the property as a tenant. Many lenders have embraced this scheme, which spares you the pain of facing eviction due to foreclosure.
What Is The Best Option?
It’s hard to say which option is the best because it all depends on your financial and personal situation. We can only advice you to choose wisely and go for the option that best suits your needs and wants.
More Info on Solutions To Property Problems:
Bankruptcy/Foreclosure Alternatives
Deed in Lieu of Foreclosure
For Sale by Owner Alternatives
Leasing Options
Mortgage Modification
Owner Financing
Selling To Cash Investor
Short Sale