What other options do I have besides refinancing my home loan if I’m struggling to make payments?
A. If you’re “underwater” on payments, you may decide to move out of your home. Here are some options to consider:
- Rent the property. This will help you make your monthly mortgage payments but you’ll still pay for maintenance on your property.
- Do a short sale. This involves selling your home for less than you owe on the loan. The bank may forgive the difference between what you owe and the final sales price the buyer pays.
- Do a Deed-in-lieu of Foreclosure. You give your home back to the lender in exchange for forgiveness of the mortgage. You may still have to pay the difference between what the bank sells the home for and what you still owe, plus legal fees. Many banks won’t consider this until a short sale has been attempted.
Before you do anything, talk to an expert about your problem, including a REALTOR®, a foreclosure counselor, a tax expert, a credit counselor and/or an attorney.