Question:

What to do in case of permanent payment problems?

Answer:

If you have permanent payment problems, you know it will be tough to keep the house. Try selling it for a full price. If you succeed, you may even net some profit. If you don't, the lender will probably accept a short sale - that is, the lender accepts sale proceeds below what is owed.

Obtaining good price for your house may take some time. To keep the first lender away, get a second mortgage and pay the first with it. It is crucial that you sell your house early in your delinquency - this will keep your credit from getting bad, and will satisfy your lender.

If you are unable to sell the house for its market value, consider a short sale or a deed in lieu of foreclosure (if your equity is little or non-existent).

Short sale and a deed in lieu of foreclosure get listed on your credit report but are not as nearly as bad as foreclosure. They also signify responsibility towards payment problems, which may be permanent but taken responsibly and without borrowers exhausting equity.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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