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Phone: (816) 842-6200
Castle Law Office

Q
Could I Sell Instead of Losing My Home to Foreclosure?

A

Yes, if you are falling behind on your mortgage payments, you can take action to sell your home before it’s foreclosed.

In fact, if you have equity in your home it can be in your best interest to sell it.

If the value of your home is equal to or greater than the amount owed on your mortgage, you might want to list it for sale. If the value is less, you may want to speak to your lender about a short sale.

In a short sale, all proceeds go to the lender. In certain states the debt is automatically forgiven. The lender may forgive the price difference or force the borrowers to pay back the difference. While a short sale is a lot of work, it could help prevent foreclosure or bankruptcy, and help preserve your credit rating.

The real estate appraisal will help the mortgage lender determine whether it will accept a short sale; and if so, you should contact a realtor who specializes in short sales. Once bids come in, it could take weeks or months for the mortgage lender to make a decision, which can be very stressful and frustrating. But this is still better than having your home foreclosed.

You could always talk to your lender about revising your mortgage payment plan or modifying your loan if you prefer not to do a short sale.

Filing for Chapter 13 bankruptcy is another potential option for saving your home. Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.

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