Many Jacksonville home owners are now facing foreclosure and have determine that they simply cannot afford to stay in their home. If you cannot make your mortgage payments and plan to give up your home but wish to find a way to avoid foreclosure, particularly the negative affect on your credit report, you and your family should consider a short sale or a deed in lieu of foreclosure. These options will allow you to escape from your mortgage without still owing money and protecting your credit score as much as possible. To learn how these options will work for your particular situation, contact a Jacksonville foreclosure lawyer. The information provided here is for general research only. In some states, lenders can still sue homeowners even after the house is foreclosed on and then sold in order to recover the remaining amount of the mortgage. This is called a deficiency and happens if the amount you borrowed is more than the amount of money your home was sold for. While banks can discharge this debt, they are not always required to do so. A short sale is beneficial only if your lenders agrees to discharge the remaining amount of your mortgage. The largest benefit of a short sale is that you get out of your mortgage. You also avoid having a foreclosure or a bankruptcy on your credit record. In most cases, your credit will not be damaged as much as it would with a foreclosure or bankruptcy. If you think you are at risk of foreclosure, contact a Jacksonville foreclosure lawyer to figure out what options are best for you and your family. In a deed in lieu of foreclosure, you give your home to the lender in exchange for the lender canceling the remaining amount of the mortgage. The lender promises it will not begin foreclosure proceedings, and will terminate any current foreclosure proceedings. Makes sure you get this agreement in writing, and also make sure the contract includes a promise to forgive any deficiency that remains after the house is sold. Before your mortgage company will accept a deed in lieu of foreclosure, it will most likely require you to put your home on the market for a few months because they would much rather have you sell the property than have to sell it themselves. Keep in mind that a deed in lieu of foreclosure will cause less damage to your credit report than foreclosure or bankruptcy. Also, unlike with a short sale, you do not have to go through the process of selling your home on your own and finding a seller willing to wait for approval of the short sale from you lender. A Jacksonville foreclosure lawyer can help you figure out if short sale or deed in lieu are options for you. There are a few things you need to think about in a deed in lieu. Just like with a short sales, you will not be eligible for a deed in lieu if you took out a second or third mortgage, home equity loans, or if there are liens against the property. Also, in today's housing market getting a mortgage company to agree to accept a deed in lieu of foreclosure can be difficult. Most lenders want cash, not property that they will have to unload themselves. Keep in mind that you may also be liable for taxes on the discharged amount of your mortgage. A Jacksonville foreclosure lawyer can help you understand how you might be affected by taxes. Links: Short Sales and Deeds in Lieu of Foreclosure, by www.Nolo.com, April 23rd 2011 Tags: Jacksonville foreclosure lawyer, Jacksonville foreclosure attorney, Jacksonville bankruptcy lawyer, jacksonville bankruptcy attorney, Foreclosure lawyer Jacksonville, foreclosure attorney jacksonville, bankruptcy lawyer jacksonville, bankruptcy attorney jacksonville, bankruptcy jacksonville, foreclosure jacksonville
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