How Do I Get out of a Mortgage?
There are many ways to get out of a mortgage:
Reveal Your Intent to Abandon the Property to Your Bank. If you make your bank aware that you intend to abandon your property, you might receive a settlement for a "deed in lieu" and the return of the property to the lender. A deed in lieu allows your property to revert to the lender, who can then sell the property and recuperate a portion of the unpaid mortgage. In return, you may be forgiven for the entire amount of the unpaid mortgage.
Conduct a Short Sale. You can ask your bank to accept less than the full outstanding value of the loan, which allows you to have more control over the property transaction.
Market Your Property for Rent. You can convert your property to a rental and become a landlord, receiving monthly income from rent. However, this approach most often only works well for properties that are in high-demand areas in which rent prices will be equal or higher than your required monthly mortgage payments.
Find a Buyer to Purchase Your Property. A buyer might offer you a discounted purchasing price for the property. The main benefit of this option is that the processing time necessary to transfer your property is brief (usually a purchase will occur within the span of one to two weeks).
Apply For a Foreclosure. You will be able to stay at your property until a court judgement is made regarding the property. However, you will face great uncertainty during the deliberation period.
The main goal for getting out from a mortgage is to reduce your costs and optimize the processing time. Be sure to weigh the benefits and drawbacks before making this decision.
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