2 of 21

Write now Article Tools

Page 3 of 3

the reality of unavoidable loan defaults.
Tax laws regarding short sales and deeds in lieu of foreclosure change from time to time. So before pursuing either of these options, consult an accountant to discuss potential tax liabilities.
* Talk with your lender about other options for dealing with your home. Though it is not common, there have been instances where a homeowner was able to make creative arrangements with a lender, especially if your real estate market is very bad.

Examples of such unusual arrangements are extension of the term of the loan, a reduction in the principle of the loan to better reflect the market values or your home, or deeding the property to the bank, then renting it back at a low monthly rate. The thinking behind arrangements like these is that in neighborhoods that have many foreclosed properties, a home retains value better if it is occupied and maintained.
* Keep your home lender or bank in the loop with monthly phone calls and letters. Let them know of any changes in your financial condition, or the progress of your home sale. Call and write, even if the news is not good. Send all correspondence by certified mail.
* Most importantly, think creatively and reconsider all your options frequently. Brainstorm with other people, especially the experts at your lending institution. Often, what seems unworkable one week, will turn into a real possibility the next.

Learn more about this author, Ysabel J. Doran.
Click here to send this author comments or questions.

• << previous page
• 1
• 2
• 3

Add your voice

Know something about Saving your home mortgage from foreclosure?
We want to hear your view. Write now!