When homeowners realize they cannot keep up with their mortgage payments, and loan modification is not an option, there are still ways to avoid foreclosure. Thanks to the Home Affordable Foreclosure Alternatives program (HAFA), homeowners can work with their banks on other ways out of the property. One popular way to avoid foreclosure is through a short sale. Short sales are conducted when the owner of a property sells it for less than what they owe on the mortgage. Your lender must approve this sale, and thanks to HAFA, many more lenders are willing to work with their borrowers to initiate and close on short sales.
A borrower will have to agree to the terms put forth by the lender when they take advantage of a short sale or other remedy through HAFA. However, it is often worth it. Not only will you protect yourself from foreclosure, you will also not have to worry about the lender pursuing you for whatever balance remains on your loan. Your credit will be damaged from a short sale, but not as much as it would have been if the foreclosure went forward.
Talk to your lender about your options. If you can, modify your loan so that you can catch up with and afford your mortgage. If that is out of the question, try to get a short sale approved through HAFA. You will end up saving money in the long term, and you will not have to worry about the emotionally frustrating foreclosure process. These options can seem complicated at times, Stephen K. Hachey, a Florida real estate attorney, can help. Contact our offices at 813-549-0096.
This article is for general informational purposes only and does not establish an attorney-client relationship. Please contact a licensed attorney in your state of residence. For more information on our services, please visit our website at www.floridarealestatelawyer.org/