Experiencing foreclosure or defaulting on a mortgage loan can be a scary situation and can have a negative impact on homeowners credit scores. Short sales, assumption, and deed in lieu of foreclosure are all programs that force mortgage holders to lose their homes but without the financial and credit consequences of foreclosure.

If you are unable to make your regular mortgage payments and are unable to afford your home their are a few options available to you. A couple of these options such as mortgage refinance and mortgage modification help home owners to remain in homes.

Unfortunately not every struggling home owner is eligible for these programs and some are left with no way to keep their homes. For borrowers who are behind in their mortgage and unable to retain their homes there are a number of options that can help them avoid foreclosure.

A Short sale, a deed-in-lieu of foreclosure, and an assumption are all options by which a home owner is released from their mortgage debt and claim to ownership without foreclosure records. These options are what is known as “not paid as agreed” and may still negatively impact credit score but often not as much as foreclosure.

A short sale, sometimes referred to as a short payoff, is a sale of a property for an amount less than the outstanding balance of the mortgage. The lender agrees to accept the money from the transaction despite it being less than they are due.

Successfully using a short sale will be determined by the specific details of the mortgage agreement, local real estate prices and forecasts, and payment history. Mortgage companies may accept the proceeds from a short sell if their prospects for receiving more value for the home following foreclosure are not good.

In the case that a lender is willing to give up both foreclosure proceedings and the remaining mortgage balance for the title of your house it is described as a deed-in-lieu of foreclosure. This is a simple trade that can avoid the messy proceedings of foreclosure and looks better, if not great, on your future credit. This program may not be an option if there are other liens on your house.

Assumption is an option that involves a suitable buyer making your mortgage payments and loan contract in return for the title to your property. This can mean that you move out of your property and the new buyer moves in or you may have the opportunity to remain in your house by paying monthly rent.

If you are a distressed mortgage holder in need of a way to stop foreclosure there is help for you, find foreclosure help including mortgage modification, loan refi, or short sale

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