What Are the Alternatives to a Short Sale of My Property?

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What Are the Alternatives to a Short Sale of My Property?

A short sale of property may be the best option for curing your current housing problem, but it is not the only option. You may be able to arrange for a loan modification from your lender, where the interest rate, monthly payment, and other terms of your current loan are adjusted to lower the monthly payment and keep you in your home. Or, you may be able to refinance the loan with another lender.

Another possible alternative to a short sale is a deed in lieu of foreclosure. If you have made a good-faith effort to sell your property but have been unable to do so, your lender may consider this option. With a deed in lieu of foreclosure, the borrower voluntarily transfers ownership of the property to the lender. This is only allowed when the property being transferred is free of mortgages, liens, and encumbrances. When completed, the deed in lieu of foreclosure results in the property belonging to the lender, who may then sell it.

Other alternatives to a short sale may include bringing your loan balance to current by paying the entire amount past due or filing for bankruptcy.

Other Real Estate Lawyer FAQs

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