According to a recent article in the Daily American newspaper, last year at least 166 Somerset County properties were bank-owned, sold “short,” or foreclosed. We know this is just a fraction of what’s going on all across the state of Pennsylvania and the nation. Recently, Vohnie Lemon of Harold Shepley & Associates, told the Daily American, you don’t necessarily have to lose your home to foreclosure if you can no longer pay your mortgage.
How do you avoid foreclosure? You can’t just ignore it. You need to work with your lender. The bank doesn’t want to go through foreclosure any more than you do. But, if you cannot afford your payment, then there must be a resolution. Sometimes you can qualify for a mortgage foreclosure defense and restructure your agreement. If that is not an option, you can work with your lender on a short sale or deed-in-lieu of foreclosure.
- With a short sale, you get the lender’s permission to sell the house for less than you have left on the loan
- With a deed-in-lieu of foreclosure, you give your home to your lender in exchange for cancellation of the loan
Both of these avoid putting a foreclosure on your credit report. Lemon points out, though, that you really should have a good relationship with your lender in order to make one of these options work. In either case, your home must have been on the market for a minimum of 90 days before your lender will be agreeable. Also, be sure to do your research, as there are tax implications for each option.
If you have attempted these options or if they seem just too overwhelming for you, there is help. The professionals at Harold Shepley & Associates, a full service debt relief law firm, work on situations just like yours every day. We can provide you with all of the information you would need to make a decision about your future and work hard to keep you in your home. Contact us today at 1-866-284-7062 or visit us at www.shepleylaw.com to find out more information on your debt relief options.