If catching up on delinquent payments is not possible, or you no longer want to keep your home, the lender might agree to put the foreclosure on hold to give you some time to sell your home। This gives you an opportunity to sell the property and walk away with your equity. At the very least, it could prevent you from harming your credit through the foreclosure process, which could make it more difficult and more expensive to get credit in the future.
- Assumption. An assumption permits a qualified buyer to take over your mortgage debt and pay the mortgage payments, even if the mortgage is non-assumable. As a result, you may be able to sell your property and avoid Foreclosure.
- Short Payoff. In cases where you sell your home for less than what you owe to the lender, the lender may accept this lesser amount as a “short sale” or a “short payoff.”
- Deed in Lieu of Foreclosure. In some cases, the lender may accept the voluntary transfer of the title of the home back to them in exchange for cancellation of your mortgage debt. This approach could have a negative impact on your credit record, although not as much as a foreclosure. It may also have tax implications for you. This might not be possible if there are other liens against the home.
