Walking away from your mortgage is a choice you cannot make lightly. You are expected to make payments on your mortgage for the foreseeable future, and your lender will not appreciate your desire to walk away from the house. This article explains how you can walk away from your mortgage with the least amount of damage to your credit. Follow wach step below before you make your final decision.
#1: Contact The Lender
You must contact your lender for information about walking away from your mortgage. You are free to walk away from your home at any time, but the lender will foreclose on the property. A foreclosure may not damage your credit permanently, but renters will note the foreclosure on your credit report. Let your lender tell you how they can help you before you simply move out.
#2: Deed In-Lieu Of Foreclosure
You may offer your deed in-lieu of foreclosing on your house. This process does not do much damage to your credit, and your lender will complete most of the paperwork for you. Ask a broker to help you work out this process with your lender, and ensure that you understand what your lender will expect from you. A document noting that your mortgage has been satisfied will arrive once the lender releases you from the mortgage.
#3: Altering Your Mortgage
A lender may allow you to alter your mortgage, and you will change the payments you are currently making. A mortgage broker will help you work out a new arrangement with the lender, or you may refinance with a different bank. Choose a plan that will help you stay in your house while making affordable payments.
#4: Be Patient
Any process in this article takes some time to complete, and you must stay in contact with the bank. You may contact the lender for more information at any time, and you will not be held responsible for further payments until you have worked out an arrangement with the lender.
You may contact a mortgage broker like Gerry Orr at 403.249.9650, and your family can find a way to stay in your house. There are instances when you must leave your home, but you should not out until you have spoken with a mortgage broker who can help you. Changing the terms of your mortgage is possible, and a broker will complete the arrangements on your behalf.