A mortgage is a major financial burden for many people in Michigan, and with the economy still in the process of recovering, many individuals are wondering about ways to get out of mortgages that they had taken on in better times. There are several different ways to do this, although they will all generally have some kind of impact on your credit.
What are the methods to get out of a mortgage?
The simplest of these methods is to sell the house. Depending on how much is left on the loan and the housing market in your area, it may or may not be possible to clear the whole mortgage by selling your house and then putting the proceeds of the sale towards the mortgage debt. You can also do a short sale, which is a sale directly to the lender. This is done if the house isn’t worth enough to clear the loan, but in a short sale, the lender forgives the remainder.
Other ways to interact with the lender include transferring ownership to it or letting it foreclose. You can try to ask for a renegotiation of the terms of the loan too. You can even try to simply default on the loan, walk away and try to resolve the matter in a bankruptcy filing at a later date.
These methods vary in terms of their impact on your credit and ability to purchase or rent a new home, but there are plenty of options to help you deal with a mortgage that you simply cannot afford to pay under the current conditions. Each of these options fits different situations and housing market conditions in Michigan.