Understanding options to leave your home

If homeownership is no longer affordable, there are options to help you exit your home without facing the costly impacts of foreclosure.

A foreclosure on your home can be devastating — financially and emotionally. If you’ve worked with your loan servicer (the company listed on your mortgage statement) and determined that you don’t qualify for a modification or alternative to stay in your home, or you’ve decided you no longer want to live in your home, you may consider options to leave your home gracefully.

Reach out to your loan servicer to discuss whether one of the following options may be available to you.

Selling with Equity

When selling with equity, you can use the proceeds of selling your home to pay off your mortgage debt. If the value of your home is greater than the amount you owe, you will be able to keep any excess funds.

Who is it for? You may consider selling with equity if your home equity is greater than the amount you owe on your mortgage or any other debts secured by your home.

Short Sale

With a short sale, you sell your house for an amount less than the full amount you owe on your mortgage. In some cases, your loan servicer may offer you an incentive to help you transition to more affordable housing.

Who is it for? You may consider a short sale if you can no longer afford your mortgage payment and you have exhausted all options to remain in your home.

Deed-in-lieu

With a deed-in-lieu of foreclosure, you voluntarily transfer the property title to your mortgage company, in exchange for canceling your mortgage debt. This plan allows you to avoid foreclosure and make a graceful exit from your home. Your loan servicer may also offer you an incentive to help you transition to more affordable housing.

Who is it for? You may consider a deed-in-lieu of foreclosure if you have exhausted all other options.

There should never be a fee from your mortgage company or HUD-certified housing counselor to obtain assistance about options to help you avoid foreclosure. Be wary of companies or individuals offering to help you for a fee and never send a mortgage payment to any company other than the one listed on your monthly mortgage statement. If you believe you’ve been the victim of a mortgage scam, call 1-888-995‐HOPE (4673) and report it immediately.