5 Ways to Get Out of Your Mortgage

Once you’ve signed a mortgage agreement, you’ve made a long-lasting and solid commitment. A mortgage can outlast the house and even you as an owner. Sometimes, though, homeowners encounter life circumstances when they need to get out of their mortgage. Maybe you have become disabled, the real estate market has changed, or you have lost your job and cannot afford mortgage payments anymore. Deciding how to get rid of your mortgage can be very stressful. However, the good news is that there are plenty of options available besides foreclosure. Here is an overview of them: 

1. Sell Your Home With the Help of a Real Estate Agent

If you have the right life circumstances and enough savings for at least six months, you can try to sell your home. You have high chances of selling it if you hire the right real estate agent, the supply of housing is limited in your area, and your neighborhood is in the middle of a seller’s market. In order to sell your property fast, you need to be flexible and set a hard deadline for offers. 

2. Deed in Lieu of Foreclosure

Deed in lieu is the process of deeding your home to the lender that holds the mortgage in exchange for being relieved of it. The lender will release the homeowner from the burden of the mortgage and resell the house later in order to recoup financial losses. Most lenders are open to this option because it saves them from wasting the money and time that goes into a traditional foreclosure. If you consider this option,  we recommend contacting a real estate attorney to help you with your specific case. 

3. A Short Sale

A short sale is when you decide to sell your home below the value of your mortgage. However, this type of sale requires permission from the bank. You are also required to submit a hardship letter explaining in detail why you are not able to pay your mortgage anymore, and you will have to provide your medical and financial records to prove your financial hardship. If your lender agrees to the short sale, then the selling process is similar to the traditional selling process. You will need to hire a real estate agent, list your home, and wait for offers. However, once the offer is received, your lender will need to approve it first. It is also important to know that a short sale is not a consequence-free solution because it still damages your credit, and you may have to pay the difference between the mortgage value and the sale price. 

4. Refinancing Your Property

If you are struggling with monthly mortgage payments but still wish to stay in your current home, refinancing might be an option for you. In order to be qualified for refinancing, your home needs to have some amount of equity accumulated. You also need a decent credit score and must meet certain financial and employment requirements that depend on your lender. The process of refinancing is similar to obtaining a mortgage. You will be starting from zero, your interest rate will be higher, but your monthly mortgage payments will become lower. But most importantly, your credit score will remain untouched. 

5. Sell Your Home Directly to a Cash Buyer

There are many companies that buy houses for cash. It is one of the fastest and most efficient ways to get rid of your mortgage without destroying your credit score. You will receive a discounted amount for your property, but you will be able to avoid real estate commission and costs of repairs because cash buyers buy homes as is. 

If you chose the last option and you are looking for a trustworthy company in the state of Oklahoma to buy your house, We Buy Houses Oklahoma City is ready to assist you. When you work with our company, you will be able to sell your property fast and without real estate agents, showings, tons of paperwork, or stress. Moreover, you will be able to get rid of your mortgage and avoid foreclosure. In order to receive a cash offer, visit our website and fill out the form. We will contact you within 24 hours.