selling in del mar - If you have fallen behind on your mortgage payments, your lender could choose to foreclose on the loan. This means that you may lose your house and suffer a big decrease in your credit history. You maybe able to sell your home to stop foreclosure and avoid the 4 to 7 years of dealing with bad credit, however. How exactly does selling your property potentially put a conclusion to your foreclose dilemma?
The Lien Goes Away Completely When the Loan Is Repaid
As long as the price that you sell your home for is larger than what you owe the back including back interest and payments, the lien on the property goes away and the lender has no reason to foreclose. This means that there is no foreclosure and no potential damage to your credit score. In the event you owe more one your mortgage than what you can sell your home to suit your needs may be able to negotiate a quick sale along with your lender in order to avoid foreclosure.
What's a quick Sale?
A quick sale occurs when you sell your house for less than the outstanding loan balance. The financial institution then accepts the sale price and lets you walk out of the property with no further action required. Although it might still cause damage to your credit rating, it will stop the foreclosure and allows you to move on with your life with no further obligation to pay for the lender. If you do choose to complete a short sale along with your bank it is essential to obtain a signed agreement out of your lender that binds these to not hold you accountable for the remainder in the loan balance. This might require a little negotiating nevertheless it happens with over 50 % in the short sales.
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