Foreclosure could be devastating to any person. Today, more people are getting into it because many of them can't afford their high mortgage payments. People are experiencing several financial hardships, and the one in the top is job loss. It's true that there are many ways to avoid foreclosure, but most of them do no better. No matter what you do, your credit will be affected but not as much as it will be when your lender puts your property on foreclosure. The best option advised by most experts, is short selling your property. Here are five steps to Sell my house fast :
1- Don't ignore:
If you want to leave all the options open to you, you need to reply at every notification your lender might send to you. If you don't, you'll find yourself out of options in no time. Many people think that they are smart enough to avoid the bank's letters, but finally, they end up with a bad credit score that takes more than five years to recover.
2- Talk to your lender:
As there are many other options to avoid foreclosure, you need to contact the bank to see which ones are available to you. If you are just experiencing a temporary hardship, then there will be many other ways for you to keep your house. The bank can extend your payment period, decrease the interest rate and issue forbearance for you, but this is only if you contact them as soon as you are not able to provide any further payments. If you know for sure that your hardship will last for a long time, then you might consider saving yourself the troubles of foreclosure and short sell your house.
3- How much is your property worth?
Before you consider this option, you need to see how much does your home cost in the market. Getting a good estimation could help you get accurate calculations about how much you owe your lender and by that the amount that will be forgiven.
4- Tax implications:
The IRS considers the amount forgiven on your mortgage as a taxable income. While the "2007 Mortgage Forgiveness Debt Relief Act" relieves you from such a tax until the end of 2012, you need to consider studying this option really carefully if you happen to be outside this time period.
5- Seek help:
It's true that today you can find any information about any subject you want on the internet. However, you need to be a good researcher to find high-quality information about the subject you're searching for. To avoid this, it's advisable that you seek help from a professional agent; he or she will guide you through all the procedures so you make sure your short sale gets approved fast.
