Tamara Bodrick: Hi! I am Tamara with Wells Fargo & Company. Today we're discussing how to avoid foreclosure. If you're facing financial challenges and having trouble making your mortgage payments, there are many things you can do to avoid foreclosure.
You can consider refinancing a repayment plan or loan modification. If those options aren't liable for your situation, you can take a look at two other options to avoid foreclosure: Short Sale and Deed-in-lieu of foreclosure.
A short sale might be the best option if you need to sell your home and it has lost its value. This is often referred to as being under water. A short sale lets you sell your home and use the proceeds to pay off your mortgage even if the sales price is less then you owe.
If you're facing the prospect of a foreclosure sale, you can consider a deed-in-lieu as a possible way to avoid it. In some ways this is much like a short sale. A deed-in-lieu of foreclosure let's you transfer ownership to the financial institution without going through the foreclosure process.
In either case a short sale or deed-in-lieu is a better option than a foreclosure sale. In some circumstances preventing foreclosure is not possible. If you are facing foreclosure and haven't talked to your lending institution about getting help, you should contact them as soon as you can.
Together, there may be ways you could find to help you stay in your home or transfer ownership in a way that will be better for you, than a foreclosure sale.