While the best outcome is one that allows you to stay in your home, sometimes it’s just not possible.
So how can you get out of your house? There are ways to avoid foreclosure, but keep in mind that these all affect your credit score, so work with a housing counselor to weigh your options.
Deed-in-Lieu of Foreclosure:To avoid foreclosure, you voluntarily give ownership of your home to your lender. You’ll no longer be personally liable for the remainder of the mortgage. If you have equity in your home, you may get some money back.
Short Sale:Your lender agrees to let you sell your home for less than what you owe on the mortgage.
Regular Sale:Depending on the value of your home, you may be able to sell it for a high enough price that you can use the proceeds to pay off the remainder of your mortgage.
These options all allow you to avoid foreclosure, which would negatively impact your credit score for seven years. But keep in mind that short sales and deeds-in-lieu of foreclosure aren’t great for your credit, either.