Two Other Alternatives To Foreclosure

I have blogged on this before but it’s worth repeating. Since most people won’t qualify for assistance under any new federal legislation, homeowners may want to consider short sales and deeds in lieu transactions. Neither will save your house but they could help you avoid a painful foreclosure process. In a short sale, you sell the house for a fair market price that is less than what you owe and the lender agrees to forgive the deficiency balance. In a deed in lieu of foreclosure, you hand over a deed to the lender and walk away. Lenders are more willing to consider these options now because they may want to avoid losses they experience in foreclosure. Homeowners thinking about these options and other choices such as refinancing, Chapter 13, forbearance and modifications, can call me in my Manhattan office to discuss their alternatives.