The Best Way to Get Out of a Mortgage When You Are Unable to Pay

Many families throughout the US struggle to find an answer to their mortgage problems. You need to know that there is always an option when struggling through this problem. Remember, financial issues are more common than what you may think because over half a million families lose their homes every year. People can wait for a foreclosure to happen or head to a professional home buyer because that assures “We buy houses in Birmingham at fair prices”.

We understand how rough it can be going through this problem, but not all is lost. Instead, you can opt for a better result. Let me give you a few pointers of options you can take when you are dealing with a mortgage, yet being unable to pay them up:

Foreclosure

Many homeowners with mortgage problems tend to pick foreclosure as their primary option without really knowing what it entails. Depending on the state you are in you will find different foreclosure-related laws. Foreclosure means not paying or communicating with your mortgage lender, which ends with them filing a notice of default or a Lis Pendens, which again depends on your state’s laws. 

Foreclosure isn’t recommended because it affects your record and can have you waiting for five to seven years (again depending on your state’s laws) to purchase another home. This also affects your credit score and makes it very hard to achieve a loan or credit. Another area this affects negatively is that even if you manage to get the credit you will find much higher interest rates than before.

Short Sale

A short sale is also known as a pre-foreclosure sale, which happens when you sell your home for less than the current remaining balance of your mortgage. There are a few steps to consider before performing a short sale, such as having your mortgage lender agree for a short sale and having a person agree to the home’s purchase. A short sale is not always the best option when it comes to avoiding foreclosure. Even after the short sale (depending on the amount that was sold) you may still have a debt towards your mortgage lender or the government. 

Both foreclosure and short sale are ill-advised options because both affect your credit score. Just like with foreclosure you may end up waiting many years to become eligible once more for a home purchase.

Selling to a homebuyer

Selling your house to a home buyer is the quickest and most effective option. Home buyers are very quick and most home buying companies purchase homes at fair prices. By selling your home to a home buyer you can avoid damaging your credit score and your ability to purchase another home, aside from being a much faster solution. It is strongly recommended to opt for selling a home to a home buyer company when you are struggling with a mortgage. If you are in Birmingham we recommend Home Buyers Birmingham who is known for being quick, effective and fair. 

You can read more about them at  https://homebuyersbirmingham.com

Home Buyers Birmingham

1821 11th Avenue South, Suite #55331 Birmingham, AL 35205

205-687-0604

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