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How to Get Out of a Mortgage Loan That You Can’t Pay

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Mortgage foreclosure is not a quick process, and that makes it even more painful.  Much of the advice that you can find online is about how to stay in your house until the bitter end, trying to buy time until the bank, which now legally owns the house, can evict you.  You might also find advice about walking away from your mortgage and your house, since you know that the situation is hopeless, anyway.  These worst-case scenario solutions are not the most practical ones, and you should neither ignore your debt nor the house that secures it.  On the other hand, you also find unrealistically cheery advice about asking the mortgage lender nicely to give you an extension on your mortgage payment.  The trouble is that you already tried that, but even after all the extensions the lender was willing to give, you are unable to pay.  Simply asking for more time only works if you have a steady income that will enable you to keep making mortgage payments every month for the foreseeable future.  A Philadelphia mortgage foreclosure attorney can help you get out of your mortgage loan agreement with as few financial losses as possible.

Give Your House Back to the Bank to Avoid Foreclosure Proceedings

In a mortgage loan agreement, the bank pays the seller the sale price of the house you bought minus your down payment, and you pay that amount back to the bank in installments.  Your house is collateral that secures the loan, meaning that the bank can become the legal owner of the house if you don’t repay the loan.  If you have fallen behind on payments, the bank has the right to initiate foreclosure proceedings and petition the court to declare it the legal owner of the house.  This is costly and stressful for you.  If you know that you can’t keep paying, and moving out is your only choice, you should arrange to give the house to the bank in exchange for it releasing you from your obligation to pay the remaining balance on the loan.  Contact your mortgage lender or a mortgage foreclosure lawyer to find out how to do this.

Give Buyers a Sweet Deal by Letting Them Assume Responsibility for Your Mortgage

An even better option is to sell your house.  If you have an FHA, VA, or USDA mortgage, then your mortgage loan is assumable.  If a buyer pays you the amount of equity you have in the house, you can transfer your mortgage to the buyer, who can keep paying the lender where you left off.  This is an attractive option for buyers, because interest rates are so high these days that the assumable mortgage will have a lower monthly payment than anything the buyer could get by applying for a new mortgage loan.

Contact CONSUMERLAWPA.com About Mortgage Foreclosure

A Philadelphia consumer law attorney can help you avoid foreclosure even if you can’t afford to keep your house.  Contact CONSUMERLAWPA.com to set up a free, confidential consultation.

Source:

finance.yahoo.com/news/want-buy-sell-home-3-090731680.html

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