options for keeping your home
Choosing Not to Keep Your Home
In some cases it doesn’t make sense to keep a home. This may be true if you’re struggling to make mortgage payments you really can’t afford or there’s no longer any equity in your property. Foreclosure may be one solution to these situations. You may also request a deed in lieu of foreclosure. How does this option work?
- You deed your home to a family member.
- You deed your home back to the lender.
- You donate your home to a charity.
“B” is the answer. In a deed in lieu of foreclosure, you deed your home back to the lender. If the lender permits you to do this, it satisfies the loan that’s in default, so you avoid foreclosure, which may stay on your credit report for seven years. A deed in lieu of foreclosure may also save the lender time and money.