Here are 7 smart and silly strategies to stop foreclosure or get out from under the debt. Which is right for you?
1. Call the Occupy Crowd
The Occupy movement claims it is getting results by showing up in mass when homeowners are due to be evicted or at court proceedings. You could give it a go, it certainly isn’t the soundest or longest lasting fix to stop foreclosure but you could get your mug on TV. However, getting rid of your new friends may be the toughest part after they get to like camping out on your lawn and raiding your fridge.
2. Deeding it away
Some foreclosure rescue firms may suggest you deed them your home or deed it to a relative in order to complicate the process and stop foreclosure. Unfortunately, this could mean giving away your home and still owing the debt or worse, not being able to take advantage of the really beneficial options. Don’t do it.
3. Waiting for a Bailout
Yes, there has been talk in the news about fantastic new government programs designed to help homeowners stop foreclosure for years. They just keep failing. You may have even passed some homeless people on your way to work today who are still waiting for their handout.
4. Turn in the Keys
Bank of America borrowers may have received an offer of debt forgiveness and the chance to lease back their homes if they give up ownership to their homes. It may sound like a better option than moving right now but when your rent goes up 10% a year and your equity bounces back in 3 years you are going to be more than just a little sick.
There are hundreds of attorneys out there who will recommend filing for bankruptcy without even reviewing your personal case. It may make sense for a few but it costs money, you need to be on top of your taxes and it will have serious financial consequences for decades.
6. Short Sale
A short sale can really be a smart move for many homeowners, especially if your lender will provide you relocation funds to help with the move. It is even more attractive now as banks cut down on the approval times.
7. Selling Your Home for Cash
If you can’t stop foreclosure or it just doesn’t make financial sense to, get out in the most graceful and beneficial fashion. Selling your home for cash means a fast closing and may net you more than you think.