Adversity spares none; it does not care if you have to pay off debt while living paycheck to paycheck. Around 35.5% of people in the United States are now in the pre-closure phase, while an astounding 44.6% of homes are facing auction*. Thousands of homeowners across the country have been issued a notice of repossession and are struggling to avoid further legal action. If you have a balance on your mortgage and have no means to pay off the loan in the immediate future, here’s what you can do.
1. A Deed In Lieu Of Foreclosure:
A deed in lieu of foreclosure is often recommended when the bank has rejected your offer to revise the loan terms or turned down your request for a short sale. The process includes transferring your title in favor of the bank (the lender) in lieu of the loan. But banks are under no obligation to accept a deed in lieu – they can refuse your offer if they believe more money can be made through foreclosure or if there are factors like judgments, tax liens, etc. While this may seem a good idea, a deed in lieu of foreclosure can seriously affect your credit rating and affecting lending terms if you are carrying a second mortgage.
2. A Strategic Default:
A strategic default is common on properties with negative equity. It is a willful default by the homeowner who finds that he owes more than what the property is worth. To mitigate loses, the borrower stops making mortgage payments. But this decision is not without its consequences – by choosing to ‘walkaway, you are seriously hurting your credit rating and are liable for income taxes equal to the amount of loan required to pay.
3. Selling It To A House Flipper:
People do know that house flippers buy pre-foreclosure properties, invest in a few repairs, and then sell them for a profit. What many do not know that this is a win-win for everyone. You can walkaway from the property without affecting your credit rating. Homeowners who do not want to spend money on repairs or worry about cleaning, junk-hauling, or closing formalities can contact investors like us who are willing to pay cash for homes in Milwaukee. Unlike other options, selling your home to an investor is stress-free. For one, you don’t have to negotiate terms with the lender. Call us at 414 435 2888 or fill in the online contact form – we’ll make a no-obligation offer in 24 hours that you can accept or refuse.
If you are late on mortgage payments and looking for a solution, visit us! We buy houses for cash!