Foreclosure may seem like your only option when you are in financial difficulty, but it should be considered your absolute last resort. Call a real estate investor for information and get an offer on your property.
Tampa Real Estate: If you are experiencing financial difficulty and know that you can no longer keep your home with the current mortgage payments due every month, you may be considering your options. One option would be foreclosure, but you should do everything you can to avoid it as a way out of your situation.
Like bankruptcy, you can be certain that a foreclosure is a negative mark to have on your credit history. Since you will still need to find housing when you lose your home, or perhaps you want to apply for a new job, your credit history is one of the new criteria that’s used to screen potential residents in apartments and house rentals and for employers that would hire you. You’ll need to keep your credit as clean as possible.
A foreclosure is always to be considered the very last resort if you have exhausted every other option possible. If you try to sell the property before the foreclosure takes place you will possibly save your credit from having the foreclosure on your credit score. Selling the property and paying off the mortgage works well where you have enough equity in the house and the mortgage balance is at or below what you can get for the house as the current market value.
Short Sale as an Option?
A short sale is another option if you don’t have enough equity in the house and still owe as much or more than what the house can be sold for. This is an option where the lender agrees to accept what your buyer offers even though it may be less than what you still owe the mortgage holder. If the buyer gets the bank to agree on the amount of sale as a final payment on your part, you will be finished with the mortgage for that house.
The foreclosure will stop, as the house was considered sold and paid off before repossession took place. Since there is usually a difference between what the lender receives as your payoff and what you really owe, you may be forgiven the difference. That could be a tax liability for you in the next year, as the IRS might consider it income that you’ll have to report, but this is not always the case. A real estate investor is the best way to get a short sale handled, as they are always looking to buy houses like yours and know how to deal with mortgage lenders.
