As a Michigan homeowner, your home may be your most valuable asset, so anything that jeopardizes your ability to hold on to it could throw your life into serious turmoil. Unfortunately, if you are struggling to stay current on your mortgage payments, you may also be facing threats of foreclosure. At the Law Offices of Joseph C. Bird, PLLC, we recognize that you may have alternative options available to you instead of foreclosure, and we have helped many people facing similar circumstances pursue solutions that reflect their unique needs.
According to Realtor.com, you may have several alternative options available to you other than foreclosure, but it is almost always a good idea to let your lender know that you are aware of the problem and ready to work toward fixing it. Once you do so, you can discuss your options, which might include modifying your loan to make it more manageable or securing what is known as a “deed-in-lieu of foreclosure” agreement.
This type of agreement typically involves eliminating your existing home loan so that you can turn the deed to the house over to a lender. When you do so, that lender may release you from further payment obligations relating to the property, provided it is worth enough.
Other options, too, may fit your needs. Some people facing a similar situation choose to conduct a short sale, but this option can hurt your credit fairly substantially. Other avenues you might be able to pursue as alternatives to foreclosure include obtaining a second or reverse mortgage, among other possibilities. You can learn more about potential alternatives to foreclosure on our webpage.