The real estate market is making a slow recovery. The numerous foreclosures across the nation have resulted in a backlog of available housing and many properties are now worth less than the mortgage on them. Many homeowners simply cannot afford to sell their homes for less than the mortgage, an action that would require them to write a check to their lender at the closing. When homeowners cannot sell or afford to sell and cannot meet their mortgage payments, there are some options available which include the following:
- Executing a deed in lieu of foreclosure where you turn over title to the home to the lender in return for not owing anything further on the mortgage
- Selling the home at a short sale where the lender agrees to allow you to sell your home for less than the amount owed on your mortgage
- Filing for bankruptcy
The federal government has a Home Affordable Foreclosure Alternatives Program (HAFA) that allows homeowners who meet the requirements of the program to engage in either a short sale or give a deed in lieu of foreclosure. HAFA also provides a relocation assistance payment of $3,000. You must show financial hardship and your first mortgage must be less than $729,750.
Other requirements apply and a knowledgeable attorney can help. For questions about finances or bankruptcy, contact David R. Black’s Bankruptcy Legal Group for effective solutions.