Are you in financial distress because of your mortgage? Do you need to get out from under a payment that has become too hard to manage because you've lost your employment, going through a divorce, or other kind of hardship?

If so, you are certainly not alone. Hundreds of thousands of other Americans are in that leaky boat with you, and there's no easy way out. But you do have choices, and you should take a look at all of them before deciding what to do.

You can:

• File bankruptcy
• Let the bank foreclose
• Apply for a loan modification
• Refinance
• Contact a credit counselor and get assistance with renegotiation
• List your home/property as a short sale

Bankruptcy has helped some consumers. The courts now have the authority to let you keep your home and either forgive a portion of your debt or modify the terms so you can make the payments. If you're also buried in medical bills, credit card debt, or other obligations you simply can't meet, this might be the best solution. But... bankruptcy stays on your credit report for 10 years and could keep you from moving forward in life. In addition, it places some restrictions on your life that you might find very unpleasant. It might not be the best choice for you.

Foreclosure is another option. You can simply quit making the payments and stay there until they knock on the door and tell you the bank now owns your home. For some this is a chance to live rent and payment free for several months and put away some money for a deposit on a rental home. But again - the effect on your credit rating is dire. In addition, you run the risk of a huge financial obligation that will follow you around forever. When the bank sells your house at a loss because the market has fallen, they might be able to come back on you to make up the "deficiency" between your mortgage balance and the dollars they collected from the sale of the house. This is another area where the rules keep changing, so check this before you act.

When you submit a loan modification package, the lender is looking for one thing: can you afford the new payments. In order to get the loan modification you must convince the lender that you are not qualified for the old loan but are qualified for the new loan. Lenders are under pressure to modify loans and the result is a substantial number of homeowners re-defaulting. Generally with a loan modification the lender looks at all sources of income, which is different than the qualification standards for traditional loan. The key is that all sources of income must be documented. If these sources of income are not sufficient to qualify you for a modified loan, then you will need to look at other remedies.

If done correctly, a Short Sale could be the best option for you. You list and sell the house for the current fair market value and walk away with no money, but a fresh start. At least, that's what will happen if you list the house with an agent who is experienced in handling successful short sales. But… the truth is your lender can also come back to you for a “deficiency” in a short sale. It's one of those details that must be negotiated with the asset manager and the lender before you sign the closing papers. Unfortunately, many real estate agents today are listing short sale properties without knowing how to conduct that negotiation, and their sellers are paying the price for that lack of knowledge. In other cases, listings that begin as short sales end up going into foreclosure. Why? Again - because the agent lacked experience and knowledge. Success in a short sale relies on 3 primary areas of expertise: Pricing, Paperwork, and Persistence. Before you list with any Real Estate Agent you need to know that he or she is skilled in all three areas. Otherwise, you could end up in foreclosure despite your best efforts.

Short Sale Your House, Avoid Foreclosure, and Cut Your Losses (...at No Additional Cost to You!) We are paid by your lender and do not charge you anything for handling your short sale.

Are you in foreclosure or pre-foreclosure (Lis Pendens served)?

Auction sale date approaching?

We can still help!

Call us for a no-cost, no-obligation consultation today!