Real Estate Law – What to Do if You Can’t Afford Your Home
There are many options available if you cannot afford to keep your home.
You can sell your home and keep any proceeds above and beyond the closing costs and what you owe the bank. If your house is not worth what you owe, you can list the property and have the bank approve a short sale. Out of the short sale proceeds, the bank can pay all closing costs, the Realtor, the lawyer, the conveyance taxes, any back real estate taxes, any back sewer or water liens and they would let you walk away without owing them any more money. There is also a deed in lieu of foreclosure.
If you have no other liens on the property and only have one mortgage, the bank will let you deed the property back to them and you will not owe them any money.
Also, there is a process called a graceful exit where the bank would pay you to leave the house, so they wouldn’t have to go through the foreclosure process and would be able to liquidate your home sooner than later and allow you money to be able to move.
