Though you’ll have entered into your mortgage with good intentions and no plans to walk away, sometimes life doesn’t go to plan and you need help getting out of a mortgage.
If this is the case, you have a few options. Some are better than others, however — if you’re wondering how to get out of a mortgage, check out our three best options. Keep reading below to get all the info you need.
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Deed in Lieu of Foreclosure
What is a deed in lieu of foreclosure? Essentially, it’s a binding legal document that transfers ownership of the property from the homeowner to the lender.
The lender will release the borrower from the obligations of the mortgage, later selling the property themselves to recoup losses.
This is often preferred by lenders, as it saves the time and money which comes when a traditional foreclosure is necessary.
Usually, you won’t be required to pay the difference which isn’t covered by the house’s value, but this differs by state so you may want to contact a real estate attorney.
Your chances of success using this option are increased if you are in a government-insured loan, so if not, you may want to give another of our options a try.
Short Sale
A short sale is when you sell your home at a discounted price after getting permission from your bank.
You’ll be expected to send a ‘hardship letter’, in which you explain why you can no longer keep up with payments, and include relevant medical and financial records too.
The process is similar to that of selling a house in normal circumstances. After hiring an estate agent, getting your home listed, and waiting for offers to come in, your lender will have to approve them.
Yes, it’s not ideal, as your credit score will suffer and it’ll remain in your credit history, but it definitely beats foreclosure or bankruptcy.
Sell Your Home
This is perhaps the least stressful option. If your main thought is just ‘sell my house fast‘, you can go to a company that buys houses.
Although the price would be below market value, you wouldn’t be faced with any renovation expenses, real estate fees, or similar costs — you can just get on with selling the house to the business.
By getting out of a mortgage this way, you can complete the whole process in about a week.
You’ll be able to beat a foreclosure filing, liquefy your assets, or resolve an estate fast, and you’ll be legally out of your mortgage!
How to Get Out of a Mortgage — Use These Tips
Of course, there are other ways to leave. When considering how to get out of a mortgage, you might think about simply walking away, or renting out the property, but no other method will be as pain-free as the three outlined here.
Whether you get a deed in lieu of foreclosure, go for a short sale, or simply sell your home to a home-buying business, you’re sure to get out of your mortgage legally.
For more advice on managing a property, check out some of our other posts.
