The realization, that you can no longer afford to keep your home is both overwhelming and heartbreaking. In this situation it is easy to become paralyzed with fear. You may be tempted to ignore the situation and hope that it goes away. However, the sad truth is, it won’t go away on it’s own. You have to take steps to get yourself out of this situation in a way that does the least amount of damage to your financial future. The following tips to Sell Home to Avoid Foreclosure MD residents can use may be just what you need.
Know Exactly What You Owe
One of the best things that you can do is sell your home. You must be able to make enough to cover the remainder of your mortgage, any back payments that you owe and any liens that may be on the house. Work with an experienced Realtor to get your home listed and sold as quickly as possible. The sooner you begin the process, the better. This option allows you to walk away free and clear, since you will be paying back everything that you owe. Make sure that you do everything you can to show off your home in the best possible light. Your Realtor can advise you on how to do this, without having to spend a lot of money to fix it up.
If you owe more than your home is worth, a short sale may be the answer. Your lender and any lien holders will have to agree to a short sale. In this type of sale, you will be selling the home for less than what you owe. Lenders will often agree to this, because it is easier than initiating a foreclosure. Foreclosures are a nightmare for all involved. The short sale is beneficial to the homeowner, as well. In many cases, lenders will not seek a judgement against the homeowner for the deficit that is still owed. A short sale is less stressful for the homeowner than having their home sold at auction is. A foreclosure on your credit report is not something that anyone wants. A short sale may be viewed more favorably by creditors in the future. It looks much better for you that you took steps to avoid closure and pay down the amount that you owed to your creditor by the proceeds from the short sale.
Anytime that you fall into arrears on your mortgage the best thing to do is speak to your lender. They can often offer advice and options that can help. When you feel that you can no longer keep the home, make the smart decision to sell before foreclosure proceedings are started. This is the best option for you. If that doesn’t work, think of a short sale. The important thing is to avoid foreclosure if you possibly can. No one wants to see their home auctioned off. Even the lender likes to avoid this, if at all possible.