What is the best way to avoid foreclosure if you have to relocate and your house wont sell?

Question

What is the best way to avoid foreclosure if you have to relocate and your house wont sell?

Answer 1

Being a landlord can be a real nightmare and costly, especially if your new location is far away. What will you do if the house needs a repair (whether it is legit or something the tenants broke)? Are you close enough to handle these issues? I relocated and rented to what I thought was a nice young family, and they bailed on rent and trashed the place. So if you take that route, be cautious and have a very detailed lease AND initial walk thru..and don't forget to do a credit check, background check, and get an adequate security deposit.

Do you have a family member you can trust who would make a good rentor, or perhaps wants to rent to own?  That might be a good option.

But being far away, and renting to people you don't know, is a huge risk and can actually cost you more in the end.

Have you done all you can to sell your home...is your home staged? If not, why not give this a try. Have you spoken to neighbors??? Maybe they have family members who would like to buy/rent.  

Have you contacted investment companies and development firms that buy homes? If not, this could be a good option. But be careful when doing your research. Some companies offer to just make your loan payment (not taking over the loan). This doesn't really help. There is a company in Maryland called High Point Development and they will  either negotiate on your behalf with the bank, or buy your home for cash.  [phone] or http://www.highpointdev.com.

Whatever you do....don't claim bankruptcy or let it go into foreclosure. There are ways to prevent that.

Answer 2

Lower your price.  Price is king right now, and homes that are priced correctly for the market are selling.

Answer 3

Tell the bank that you are prepared to sign a deed to them today.  And write a formal letter promising that you will not trash the house.  That is their worry... that you deed them a dump.

Answer 4

Rent it out for a couple years.  When prices come back, sell.