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These alternatives to foreclosure could help your debt concerns

You never thought you'd be in the position where you could lose your home due to missing payments, but you are. Now, you're not sure what to do. You're beginning to think that you should just allow your home to go into foreclosure, because that would be easier.

Before you decide to allow a foreclosure to continue, you may want to consider other alternative options. For instance, if you are falling behind on your mortgage, renting out a room in the property or the entire property might help you catch up on your payments.

Another thing that might help is refinancing. When you refinance a loan, you can negotiate for better terms, like a better interest rate or reduced monthly payment. Forbearance may also be a possibility if refinancing isn't. With a forbearance, the mortgage lender may forgive missed payments or allow you to pay less due to your circumstances.

If you don't want to keep your home, then a short sale may be a good option for you. A second option is a deed-in-lieu of foreclosure, which is similar to a foreclosure, but instead of waiting for the foreclosure process to complete, you turn the deed in to the bank. Lenders must approve this. Beneficially, this option may also have a lower impact on your credit score and ability to borrow in the future.

A short sale is when you sell your home for less than it is worth. When the lender agrees to the short sale, it also agrees to take less than what you owe, so you don't end up in debt and without a home.

If these seem like ideas that could work for you, your attorney can give you more information. There are options available, so you can move forward with a stable financial future.

Source: Your Home 123, "8 Alternatives To Foreclosure," accessed Sep. 19, 2017

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