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3 Ways to Avoid Foreclosure in New Mexico
3 Ways to Avoid Foreclosure in New Mexico when finances go south.
When things go bad, sometimes they go really bad, especially with money. When money sources dry up for whatever reason, it always seems monthly payments go up not down. Sooner or later, if things do not improve, the mortgage on the house becomes more and more difficult to pay. Here are 3 ways to avoid foreclosure on your record.
Foreclosure prevention programs are supposed to help, but it does not always work out that way. Sometimes you are just not able to get a new job, or get well, or resolve whatever situation caused the issues to begin with.
Many people get to the point where they just want out of the situation so they can move on – without a foreclosure on their credit report.
Here are 3 ways to avoid foreclosure.
- Sell Your House. If you have a pending sales contract, or even if you put your home on the market, many mortgage servicing companies will postpone foreclosure proceedings. This is only a solution if you have enough equity in your home to pay the balance of your mortgage plus the fees associated with selling. A successful sale allows you to avoid banking fees and harm to your credit rating.
- Short Sale. Many lenders will work with you to allow a short sale – that is the lender will take less for your note than you owe. One thing to be aware of is that some states and the IRS will allow you to avoid paying tax on this debt forgiveness. Be sure to know the facts before you agree to a short sale! We can help with this information.
- Deed in Lieu of Foreclosure. In this case you agree to transfer the deed to the property to the lender in exchange for cancellation of the remainder of your debt. You will, of course, lose your home, but you will not have a foreclosure on your record. Again, it is important to consult with a tax professional so you do not have any uncomfortable surprises come tax time!
We have been helping homeowners find the best solution for issues relating to foreclosure and bankruptcy for many years. Call us today for help. We hope these 3 ways to avoid foreclosure have been informative!