Deciding the fate of your home when you can’t afford to maintain the payments is a tough position to be in. Many people are faced with this decision each day and many are finding their choices to be plentiful, but difficult. If you have tried to apply for a refinanced loan or mortgage modification without success, you may be left with only two solutions to avoid foreclosure.
Stay Or Go?
A short sale can be a great tool for resolving financial hardships in your mortgage. As an alternative to foreclosure, a short sale will alleviate your responsibility over the mortgage in exchange for you selling the home on the bank’s behalf. The trouble with a short sale is that it requires you to give up the home. Many people find that a short sale, albeit a good solution, can be a more permanent solution than they need.
Renting the home can be a great option in today’s market. Many homes are easily rented for more than fair market value. With many potential buyers afraid to take the chance, many are looking for moderate to upscale rentals instead. Renting out your home can be one way to keep the home and ensure the mortgage payment is covered, but does come with some risks. Not all renters are reliable and even if you do have a signed lease agreement, if the renter defaults you will be left holding the bill. Further, risks of property damage and neglect are also possibilities in a rental situation.