11 Ways to Avoid Foreclosure (Pt. 4)

9. You can always sell your property outright if it is worth enough and you can find a willing and able buyer. You can also list the house as a For Sale By Owner (FSBO) through your local real estate broker. Sometimes the best option is to get rid of your property and repair your credit situation until you have the opportunity to purchase a new property. This process may take a few years, but it is worth fixing up your credit for.

10. Homeowners can often offer the bank a deed in lieu of foreclosure. This means you would voluntarily give the property back to the bank. In exchange, the bank agrees that the property is payment in full of the loan. This may not be much better than a foreclosure, but it will ensure that the sheriff sale and eviction process is skipped. The other advantage of this procedure is that the bank will not be able to sue former owners of the property for a deficiency judgement. They will accept the property itself as full payment of the loan.