Finding yourself behind in your mortgage payments adds a lot of stress. Unexpected expenses come up and you have to make choices about what gets paid first. It is especially difficult if it is a medical expense where there really is no good choice.

Laws may differ from state to state but generally, if you don’t pay your monthly mortgage payment for 90 days, technically you are in default on your mortgage. The lender can go through a legal process and foreclose to take ownership of the property.

Keep in mind that foreclosures can impact your credit rating and continue to be reported for 7 to 10 years. This can make it challenging to qualify for another home loan in the future and possibly even a rental now.

There are several counseling resources for homeowners in financial distress and facing imminent foreclosure. You may also qualify for these options:

Short-Sale- where you sell your house for an amount approved by your mortgage company,  sometimes less than the balance you owe them.

Mortgage Release (Deed in Lieu of Foreclosure)- where you voluntarily transfer the ownership of the property to the holder of your mortgage and in turn they release you from your mortgage loan obligation and future payments.

In both cases, you need to be ready to leave your home.

If you don’t want to move and you may have another option.:

Leaseback.-

This new method for selling your home comes with a bonus feature. You can remain in your home as a renter. Get out from under the pressure of catching up on mortgage payments. You may be able to sell your house to an Investor interested in keeping you in your home. The Investor purchases your property the traditional way pays off the mortgage loan at closing and you keep any proceeds that remain after your standard closing costs are deducted. The lease terms are agreed upon upfront and in some cases, you can prepay your first years rent using the closing funds You avoid Foreclosure and get to stay in your home.

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