Get Rid Of Your House – Strategies That May Work For You

Imagine that you have a housing emergency such as a job transfer, divorce, illness or foreclosure. You need to sell your house in a hurry. If you are not able to find a regular buyer for your house, there may be other options for you, including a short sale or deed-in-lieu of foreclosure, a strategic default, or simply giving your house away.
Let’s look at these three strategies.

Short sale or Deed-in-lieu of foreclosure. A short sale is when the owner is allowed to sell the home for less than the amount that is owed on the mortgage. One drawback to a short sale is that it may take a year or more to close. It’s important to get a real estate agent that is experienced in short sales. If you can’t get approved for a short sale, you can try for a deed-in-lieu of foreclosure, in which you sign the house over to the lender in order to avoid foreclosure. It’s unlikely a deed-in-lieu is going to go quickly, either. Don’t forget that either a short sale or a deed-in-lieu is likely to hurt your credit score, and in some states, the lender can come after you for the unpaid portion of your mortgage, even years after the event occurred.
Strategic default. Strategic default is when you just stop paying your mortgage and let the bank foreclose. During the foreclosure process, you stay in your home and basically live in it for free. It is not a fast process either, taking one to two years. Defaulters can save up some money during this time, so they have something when they finally vacate the home. However, strategic default has a down side, including destroying your credit, possible tax consequences and the inability of getting a mortgage for many years after default.
Give away your house. This is the fastest way to get rid of your home, and usually occurs when older parents or grandparents give property away to  children or grandchildren. It takes little paperwork, although if a trust is involved it is more complicated.

No matter how you decide to get rid of your house, make sure you consult with a professional first, to determine the possible tax and legal ramifications of your actions.