Tag Archive for Foreclosure Help

Where to get foreclosure help

©Frederick Homes for Sale - flickr

©Frederick Homes for Sale – flickr

If you are a homeowner facing foreclosure, you are probably wondering what to do and who can actually help you.  You may have questions about the foreclosure process and what is going to happen.  How soon you’re are going to loose your house and what are your options for saving it.

You first best option is to talk to someone who has a background in foreclosure and a lot of knowledge; like your lender, a lawyer or even a realtor.  You can at least ask them some basic questions, so you will have a better understanding of the process.

If you can’t afford to hire a lawyer, then searching for information and advice on the Internet maybe a useful tool.  Here you can learn your rights as a homeowner and find many different options that may work for you.  Remember that some of the laws can change, depending on what state you live in.

Online you should be able to find details on the foreclosure process, but also the laws in your state of residence.  You may also want to look up attorney’s websites that deal with foreclosure; sometimes on their site you can find a lot of useful free information.  Make sure to look up law sites for lawyers in your state.

Here I will share with your some of the most important foreclosure tips
-Did you know that in some states foreclosure could be stopped right away when bankruptcy is declared?
-Did you know that you could ask your lender for a loan modification to reduce you monthly payments?
-Did you know, that if you didn’t want to keep your home, you could still stop the foreclosure by doing a short sale on it?

These are just a few of the tips you can find out by reading up on the website.  You don’t need to pay the high dollars that most attorney’s ask for, when you can gather the information yourself and put it to use.

If you do have a specific case or question, or even feel like you are being scammed, hiring a lawyer would be advisable though.  Even if you don’t have the money, with enough research, you may be able to find a lawyer that will work on your case pro bono, or they will work out a payment agreement with you.

Another website that has gathered a lot of data, is the United States Department of Housing and Urban Development or (HUD).  There you can review your options and talk with an approved housing counselor.

Final there are websites that will give you tons of valuable information, have numerousforeclosure blogs you can read and even free foreclosure ebooks you can download.  Take advantage of the information and stay on top of your foreclosure options.

Foreclosure: Facts and Fiction

©suphakit73 - freedigitalphotos

©suphakit73 – freedigitalphotos

How many times have other people told you certain things which just weren’t true?  You may have even believed them for some time, because they said it so convincingly.  But after doing some research of your own, you realized they were completely wrong.  It could have been about anything: who won the World Series in 1988, who the 25th president was, that it is for sure going to rain out today.  Unfortunately this also applies to many misconceptions regarding dealing with foreclosure.

Misconceptions can make homeowners facing foreclosure take the wrong actions.  When you are trying to fight foreclosure, you know every minute counts, so you don’t want to get some sort of misinformation, causing you to go in the wrong direction.  You don’t want to end up loosing your home, because you took some bad advice and didn’t do any of your own research.  Here are a few myths surrounding foreclosure.

The bank wants your home foreclosed on because they want to resell it.
This is just not true; the bank would like to avoid foreclosure as much as you.  The more foreclosures on the bank’s books, the worse it is for them.  Also, when they foreclose on you they have to take care of your property and try to sell it, which means time and money for them.  Most lenders will try and help you out, if you go and talk to them right away when facing financial difficulties.

Right when you receive a foreclosure notice, you most start packing and move out.
Depending on what US state you live in, the foreclosure process can take several months.  But that does not mean delay in looking for a new place; get on it right away, because you will be removed from the property at some point.

When you are in Foreclosure, no bank will refinance your mortgage.
This may not be true; if you have lived in a house for some time you may have equity built up, you may be able to refinance easily.  Or if you have good standing credit you may be able to get a loan modification.

Filing bankruptcy will always save your house.
Filing for chapter 7 bankruptcy will only temporarily save it.  It is basically a way to buy you some time, while figuring out what to do next.

The bank has your house now so you don’t have to worry about it.
If there is a deficiency you can still owe the difference, along with any interest that occurred.  This is true even when you no longer own the home.

Once your house is gone you can never buy it back.
Some states have redemption rights where you can buy the house back, if you can pay the bank off in full, within a certain time period.

The bank owns all the stuff in your house, when they foreclose on you.
This isn’t true, if you can carry it away with you, then it is yours.  You get to keep all of your personal property, but any permanent attachments to the house should stay.  Don’t make this a huge issue, by trying to take everything possible — it will be more trouble then it is worth.

So do your research before believing everything you hear; even if you read something that sounds questionable, talk to a few knowledgeable professional about it, such as a real estate agent, or foreclosure lawyer.  It is important to gather as much information as you can about the foreclosure process, but it is even more important to know which information is correct.

How To Get Cash And Stop Foreclosure

There are many reasons why you may have missed a few of your mortgage payments; sickness, job loss, divorce, or numerous other reasons that can have you worried about foreclosure. You know exactly how the problem started, not having enough money to make your payments. Don’t put it off any longer, explore you options on how to get cash and get out of foreclosure now.

©phanlop88 - freedigitalphotos

©phanlop88 – freedigitalphotos

There a two options most people choose to get the cash to pay off the loan; the first is another form of financing that will bring you back into positive standing with your lender, the second is to sell your house quickly as possible. A cash sale will pay off your mortgage and bring you out of foreclosure before it even happens.

First off you need to remember if you are not able to make your mortgage payment, call your lender right away and explain your situation to them. Hopefully your lender can listen and provide solutions, but if they cannot you need to get busy will other ideas on stopping the foreclosure.

One good thing about the economical crisis is that you will have many more foreclosure solutions than you would of, even a few years ago. Today we have non-traditional loans, longer terms, adjustable rates, and loans that allow you to finance 100% of the cost. You do a lot of work on you home, making it a safe and happy place to live, so what can you do to stop home foreclosure?

You can get cash if you have built up some equity in your home. Most lenders would be more than happy to give you a equity loan. You can then use this money to pay off past due amounts and stop the foreclosure on you home. You also may be able to refinance your entire home and possibly come out with lower mortgage payments.

You should contact local lending institutions or browse online for mortgage lenders who may have many different financing options for you. If you take time to read foreclosure help websites you should be able to find plenty of investors who are willing to do high-risk foreclosure financing. This could be another option for you to get cash and save your home, though you will have to make timely payments back to the investor, or risk losing the home.

Keep in mind when looking for help online and dealing with investors you do need to be aware of scam artists. There are several predatory lenders offering loans at an outrageously high interest rate, have exorbitant brokerage fees, or repayment terms that you could not possibly meet. All of these things will lead you right back into foreclosure, so make sure you read the fine print.

You second option is to sell you house for cash and use it to pay off your mortgage. If you sell your house as a pre-foreclosure, buyers will see that you are serious and that you probably have it priced right. Therefore leading it to sell quicker than just a normal house on the market. Plenty of people in the buying market are looking for a fair price, so they turn to pre-foreclosure. This can work to your advantage and end up in a quick and hassle free sale, giving you cash in just a few days. Overall just remember when you are facing foreclosure, there are options. Whether you want to remain in the house or sell it is up to you.

Foreclosure Bailout Plan Changes and Nationwide Statistics

©Idea go - freedigitalphotos

©Idea go – freedigitalphotos

October 2008 shows that foreclosures are on the rise, approximately 25% nationally compared to last year at this exact time. Lenders began foreclosure proceeding on more than 279,000 in this past month alone. Along with that, 84,000 properties were reported repossessed this past October.

The big questions being: are things going to turn around, when is the economy going to improve and are there laws being put in place to help homeowners. These are all valid yet difficult questions to answer. Right now a combination of strict lending standards, decrease in home values and the poor economy are hindering any improvements for homeowners.

Last month you may remember hearing on the news, the downward spiral of the financial market, forced the government to pass a $700 billion rescue package. The plan was to buy bad assets from the lenders; experts predicted them to have acquired more than a third of all U.S. properties for sale. Last Wednesday it was announced by Treasury Secretary Henry Paulson that the “plan” would not purchase those troubled assets. He said it would take too much time; instead the Treasury will be buying stakes in banks and encouraging them to resume more normal lending.

Housing and Urban Development Secretary Steve Preston also announced on Wednesday that the government could possible let borrowers qualify for a $300 billion program designed to let troubled homeowners swap there risky loans for more affordable ones. The only down fall in this though, is if lenders decide not to participate because of having to reduce the value of a loan and therefore taking a loss. Hopefully this does not happen and the help will decrease foreclosures.

Putting it into prospective- Number of homes that received a foreclosure filing for the month of October 2008:

• Nevada- 1 in every 74
• Arizona- 1 in every 149
• Florida- 1 in every 157

These three states main metro cities hold many of the top ten spots for highest foreclosures filings the month of October 2008:

1. Las Vegas, NV
2. Fort Myers, FL
3. Miami, FL
4. Stockton, CA
5. Merced, CA
6. Phoenix, AZ
7. Riverside/ San Bernardino, CA
8. Ft Lauderdale, FL
9. Modesto, CA
10. Orlando, FL

Now for some good news! Overall, California was down by 18 percent from the previous months. This could be due to some of the new laws delaying the foreclosure process. For example in California lenders have to contact borrowers 30 days before filing a default notices. Other states are now trying to incorporate this law; North Carolina has decided to give borrowers an extra 45 days. Only time will tell if this, along with if the government “bail out plan” will help people avoid foreclosure or just delay the process.

If you are a homeowner and facing foreclosure what is your opinion; can the governments bailout plan succeed? If you were given extra pre foreclosure time, will it help you avoid foreclosure? As a homeowner, what do you think would help your situation the most?

Finding Foreclosure Assistance Top 7 Tips

©401(K) 2013 - flickr

©401(K) 2013 – flickr

With the foreclosure rate ever increasing, the market has been flooded with stop foreclosure programs. There are so many foreclosure assistance solutions available to homeowners it can become overwhelming. Knowing where to start getting help and understanding your options, can be the hardest step of all.

If you started missing payments on you’re house and find yourself falling further behind, it’s time to start looking for help. When looking for foreclosure assistance, you want to make sure you choose the right solution for you personal needs. There are 2 main things that you need to keep in mind when looking for foreclosure help.

• First make sure you are not getting involved in some sort of foreclosure assistance scam. There are people that will take advantage of others in there time of need. Research any companies you plan on getting involved with; make sure they are legit. If there is any question in you mind, move on to someone else.

• Look for options that will save your home, although it may not always be possible. There are plenty of assistance programs out there, look to one whose first priority is to save you home. Some “foreclosure assistance” programs are only looking to buy cheap houses.

Now you know the two main things to keep in mind when looking for foreclosure relief. Read over our top 7 ideas for foreclosure assistance solutions.

1. First thing you should always do is talk to you mortgage lender; this is the number one thing you can do. This way you can find out where you stand and what options are available through your lender. Be honest with your lender, but keep in mind your priority of saving your home, see what solutions they can come up with. The sooner you go to them, the more likely they can help you, especially if you haven’t missed too many payments.

2. Refinancing your loan is always a good idea if you haven’t waited too long. If your adjustable rate mortgage has increased drastically, it should be your first consideration. Lowering your interest rate will save you a lot of money and will most likely help you avoid foreclosure. Refinancing is usually only available when you’ve missed less than 3 payments and still have decent credit.

3. Ask your lender about Forbearance on your loan. Forbearance can help reduce your mortgage payments or even delay them for a time period without any legal action. This is a great option for someone that has had a job loss or extreme financial problems, explain it to your lender, and ask for a Special Forbearance.

4. Selling your home may be a good option for you if you’re still in the pre-foreclosure stages. (have not gotten a actual foreclosure filing) Obviously it takes time to sell your home, so the quicker you get it on the market, the better. Selling your home is a sure way to avoid foreclosure.

5. Some companies will offer you a special repayment plan. This means your lender will allow you to repay your past due amount by adding part of it to your monthly payment each month until you’re caught up. This is a good solution if you just fell behind on your bills due to temporarily money loss and can keep up with the new current payments.

6. You can also find other companies that will do a short sale on your home. A short sale will let you sell your home for less than the mortgage amount, with your lenders approval. This would be more of a last resort, after you have explored your other options.

7. Deed in Lieu is a final option you can explore, where you convey all interest in your property to the lender to satisfy your debt and avoid foreclosure. A deed in Lieu can still harm your credit, so be careful and find professional help before choosing this option.

Make sure you explore all possible foreclosure options before it’s too late. Help is available, you just need to take advantage of it while it’s still available.

How To Save Your Home From Foreclosure

When you pick up a newspaper or turn on the news today, the top stories you will find are foreclosures increasing, economical crisis and bad job market. It is

©Cool1723 - flickr

©Cool1723 – flickr

hard to stay upbeat and positive, when these are on your mind. You might be thinking, how can I avoid these things; if they are happening to my neighbor, they can easily happen to me too. If you stay aware of what is going on and informed it may help you avoid foreclosure.

If you have fallen behind on your house payments, you need to ask yourself some questions. Is your lack of funds permanent or just a temporary setback? If it is temporary, exactly how long before the funds return? Are there other family members that can help with the payments? If so how much and for how long can they contribute.

If you know your loss of income is just a temporary situation and you can provide proof of this, you can then go to your lender and possibly get a grace period called Special Forbearance. This is where your house payment can be temporarily lowered, and you will have the opportunity to avoid foreclosure. In order for you to be approved for a Special Forbearance plan, you must provide details on how you will get caught back up with your mortgage payments. You’ll need proof that you can afford the new payment without slipping further behind.

A second option is to think about applying for a home equity loan, which if approved will also help you avoid foreclosure. A home equity loan is known as a second mortgage, which lets you borrow money by leveraging the equity in your home. With a home equity loan you can borrow up to $100,000, which you can then use to get caught up with your payments. This option will only be available to you if you have lived in your home for several years and made enough of your house payments to have home equity built up. Your credit will also need decent, so this option needs to be taken advantage of before you miss too many payments.

In some cases, you can essentially use a home equity loan to pay your entire first mortgage. Obviously, this will help you avoid foreclosure because you’re essentially refinancing your existing mortgage. You’ll be cashing out the home equity and using it to pay off your earlier mortgage. Shop for a good interest rate and you can even get a lower monthly payment. Before taking this approach, you most be certain that you will stay current with payments; otherwise your situation will not improve at all.

Lastly if your don’t have good credit, usually because of missing several payments, you may not want to go with a home equity loan because it will come with a very high interest rate, making it hard to keep up with the payments. If you have exhausted many of your options to avoid foreclosure on your own, you may want to turn to friends and family for a loan, if you don’t feel comfortable doing this you may want to explore the options of selling your home and moving into a more affordable place. It is not the most ideal situation, but it is better than having a foreclosure on your credit record.

Ultimately, there are many options that may help you keep your home, but it’s important to act quickly and ask for help as quickly as possible. Once you’ve missed your first payment, the time bomb starts ticking, so take action quickly and save your home from foreclosure today!

How To Sell Your House and Stop Foreclosure

©loaexperts2012 - flickr

©loaexperts2012 – flickr

There are many methods to stop foreclosure on your home; the one we are going to examine today is selling your home. Getting your home to sell quickly may be one of the best options for foreclosure relief. There are many little tricks to prepare your home to sell faster than other houses on the market. It can all come down to making small inexpensive adjustments to you home.

1. Remove Wallpaper-If you have wallpaper in your home take it down and paint a neutral color over the wall. Wallpaper can automatically turn a buyer off. They may actually like the layout of your home, but one room covered in wallpaper, especially they living or dining room can send a person running. Everyone’s taste is different, if your personal style differs from theirs they won’t be able to envision themselves living there. Your best bet is to go with a neutral color, giving the buyer endless ideas on how they can make the rooms work for them.

2. Clean all the nooks and crannies-If you have dust bunnies floating around the floor or ceiling, clean them out. Give your kitchen, basement and bathroom the most sparkling cleaning it has ever had. If the buyer is deciding on purchasing your house or your neighbors it may come down to which bathtub didn’t have soap scum.

3. Yard Work is important- It is the cover on your book, you don’t want the buyer to turn away before getting to the front door. It can be as simple as picking up sticks, raking leaves, mowing the grass, puling out weeds. Drive up to your house like it is your first time; have a broken mailbox replace it, add flowers or hanging plants by the entryway. Doing these small things can change the whole mood of your home.

4. Overall smell- Walk into your house after being out in fresh air for a while and take a big whiff, the smell in there is you and you probably haven’t noticed it much before, but a buyer will. Open windows and air out your space; use an odorless spray in all the rooms. It is also best to try and get your house scent free, not everyone likes the smell of fresh pine or mountain mist.

5. Organization- If you still live in the house, get your personal items looking organized. Since your going to be moving soon this is the best time to rid your place of old magazines, mail and useless knickknacks. Going for a minimalist approach will make you place look bigger. Organize your garage, kitchen and laundry room; this will let the buyer see that they have spaces they can live and work with.

6. Closets Space- another big item buyers look at is closet and storage space. Show off whatever you have, empty as much of your personal items out of them as possible. Make the space look large, if you have a closet that’s organized well and has built-ins make sure the buyer sees it.

7. Lighting- Natural lighting is always nice; if you have a lot of windows, make sure they are clean. Replace any burned out light bulbs throughout the home, even the in the closets. Create mood lighting, show off each room in its best light, not too bright and not too dark. Remember most people don’t want a ton of light streaming in on them while there trying to sleep.

8. Price factor- Sure your home can feel priceless to you, but remember that the buyer is going to be looking at several places within the same price range. Be sure yours is comparable if not at a slightly better price than others in the market.
Doing these simple tips can help you sell your home quickly and stop your foreclosure worries. Take pride in your home and someone else will too. If you ended up selling your home quickly, please let us know tips that worked or any additional ideas you came up with.

Foreclosures Around The Nation

©Vichaya Kiatying-Angsulee - freedigitalphotos

©Vichaya Kiatying-Angsulee – freedigitalphotos

Last week, there was a lot of talk about foreclosures and plans to stop foreclosure, but will anyone ever take action? As we all know, public officials, including the president, all like to talk about their “big plans” once they take office, but very few ever deliver. Only time will tell if government offices have the ability to stop foreclosure, but if history has proven one thing, it’s this: Be very skeptical of anything an elected official promises!

In Chicago, Cook County Board President Todd Stroger is leading the efforts to impose a year long moratorium on foreclosures. Stroger is gathering signatures, speaking at public engagements, and sponsoring workshops throughout Illinois to help foreclosure victims. Entering 2008, Chicagoland foreclosure rates were at an all time high, but home sales are beginning to turn around and foreclosure rates are beginning to flatten out. Home sales are up 25% which will help the overall economy, but home values are still decreasing in many areas. Overall home appraisals within the city of Chicago are down over 5% from last year.

Michigan activists and public officials are joining together this week in Lansing to march in a parade to halt foreclosures for up to two years. Michigan is one of the hardest hit states when it comes to foreclosure and decreased property values. The state senate bill protect homeowners for a period of 6-24 months, while giving would be foreclosure victims a chance to get back on their feet. Michigan foreclosure rates were up 27% from last year, which is actually an improvement from previous months. Foreclosure rates throughout Michigan were up over 100% in previous months! Michigan is still easily one of the top 10 states for foreclosure filings, but rates are significantly decreasing.

Last weekend, Sept 7th to be exact, the government officially took over Fannie Mae and Freddie Mac. Both of these organizations were created by the government and Fannie Mae was previously run by the government, so it’s not really much of a surprise. By taking back these organizations, they hope to provide stabilization throughout the economy, by proving that the US government will stand behind our lenders and continue to guarantee low cost mortgage throughout the US. The end result of this “conservatorship” probably be the American tax payers bearing the brunt of the foreclosure crises, to the tune of about $200 Billion. Senators nationwide are asking the newly appointed Chief Executives of Fannie Mae and Freddie Mac to temporarily stop all foreclosures to allow local governments and home owners to find other options to stop foreclosure.

While foreclosures in many states such as Nevada, California, and Arizona still seem to be increasing, other states like Tennessee and Idaho are leveling off. Based on 2007 foreclosure rates, Tennessee rates are nearly identical. This may represent an improvement, but the state still has 13th highest foreclosure rates, with over 1 in 600 homes in foreclosure. Nationwide, about 1 in 400 homes have received some type of foreclosure notice. The top ten states in foreclosure rates were Nevada, California, Arizona, Florida, Michigan, Georgia, Ohio, Colorado, Illinois and Indiana, in that order. Although Michigan, Georgia, Ohio and Colorado all reported rate decreases and may soon find themselves dropping from the dreaded top 10 list.

How To Reverse The Foreclosure Process


©Idea go - freedigitalphotos

©Idea go – freedigitalphotos

Finding your options when facing foreclosure can seem very difficult, but here are 10 easy steps to help you determine which options are available for your exact situation. In most cases, you will need to work with professional foreclosure, real estate, and mortgage professionals, but you could also use these steps on your own, without help.


  • Understand the foreclosure process and timeline for your state and determine your exact location on that timeline. You need to know exactly how much time you have left for each stage of foreclosure. At this point you will also be requesting that the lender put the entire foreclosure process on hold for 30 days for you to present a foreclosure alternative.




  • Request a payoff for all of the mortgages and liens against your property. This payoff should be



requested officially and is good for 30 days. This is not the amount they give you on the monthly statements or tell you over the phone.

  • Establish the exact amount you will need to bring your mortgage current. This number increases on a daily basis, so you will request the total arrears along with the exact amount of additional fees on a daily basis. Again, this number must be



requested officially, they do not give you accurate figures over the phone or in your monthly statements. You will also submit a request to reduce the amount of legal fees and to stop additional fees for 30 days.

  • Perform a complete valuation or appraisal on the property. This includes taking price opinions from many sources and determining the current market value of the home. Because of the current market conditions and inflated or inaccurate appraisals, you



must complete a current valuation; a previous or recent appraisal may not reflect the true market value of your home. This is a very important part of negotiating with your lender.

  • Determine your total household monthly income. In many cases, there is additional income that can be used towards your Debt to Income Ratio (DTI). Your DTI is used to determine whether you qualify for both refinancing and any type of loan workout or modification.




  • Complete a full mitigation package including all verification documents, hardship letter, and supporting documents. Your hardship letter will include the 10 required points along with supporting documents showing a financial correction. A request for a pre-qualified workout solution or loan modification will also be part of your mitigation package. When presented correctly, your Mitigation package with have the best chance of success.




  • Submit your mortgage application for refinance through one of our preferred partners. Unlike mortgage companies who have turned you down in the past, our partners will base their decision on your equity and your ability to repay the loan, not your credit.




  • Solicit offers from private lenders and investors. With the ForeclosureFish system, you will have access to private investors who can refinance your home or provide you with a new loan with



interest rates as low as 5%. Private investors offer a unique opportunity to homeowners and in many cases homeowners are able to cut their monthly payment in half!

  • Compare the legal requirements of foreclosure in your state to determine if your lender has taken the legal steps necessary to foreclose on your home. If your lender has not properly completed these steps, the foreclosure may be illegal and can be reversed by your attorney.



  1. Increase your income as much as possible and raise as much money by selling belonging that are no longer used. The more cash you have on hand, the easier it will be to carry out any method to stop foreclosure.

Once all the previous steps have been completed, you should have several legitimate options to stop foreclosure. Simply choose the option that fits best into your long term financial plan. After you complete the foreclosure recovery plan, you can begin to repair your credit. It’s important to begin both of these processes as quickly as possible, so don’t waste any time.

Knowing When To “Throw In The Towel” In Foreclosure

©nirots - freedigitalphotos

©nirots – freedigitalphotos

Some people never know when to give up. There is a crucial point in foreclosure where you need to realize that it’s time to stop fighting. This may be hard to hear, but in many cases, if you “fight to the death”, it may cause irreversible problems with your credit and future financial state. Knowing when to stop fighting foreclosure can allow you to quickly recover and begin living a normal life again. Many people can even buy a new and better home almost immediately.

foreclosure knockoutKeep in mind, when we say give up trying to save your home, we don’t mean to stop fighting foreclosure, we just mean that you should stop wasting time and money trying to keep your home. Having a foreclosure on your record is never good, so when you are ready to accept the fact that keeping your home is no longer an option, you need to begin finding ways to make the impact of foreclosure as painless as possible.

In previous articles, we recommend never giving up; in retrospect, this is really bad advice. What we should have said is, don’t give up until you talk to us first. We have many options available that no other companies offer, so even if you had been turned down, there was still hope. But you need to know when to stop looking for help and when help just isn’t available. In general, if we don’t have an option to help someone, it’s time to start thinking of ways to make the foreclosure as painless as possible. Too many people waste all their time and money fighting an impossible battle.

If you don’t want someone elses help, or if you would rather figure it out on your own, here are a few ways to know it’s time to give up:

  1. If you don’t have a job or other source of income to make your payments, then fighting foreclosure will be very hard. You will need to establish a source of income as quickly as possible. Finding a new job may be the answer, but if your income doesn’t begin to improve, you may want to think about moving on.

  2. When you’re upside down in your home, there are only two real options for keeping your home. In some cases, you may be able to do a “short payoff” to lower the total amount owed, but this is a rare occurrence and must be negotiated by a professional. The only other (legitimate) option is to sell the home with a short sale. You may be able to purchase the home back at a later date, but you’ll be required to move out first. All other options are a losing battle, because you’ll be paying more than the home is worth. In this situation, it’s better to find a more affordable home.

  3. Some properties are located in an area where the values are dropping so fast, they’re in danger of being completely worthless. If your home is in an area where values are dropping, then you may want to consider getting out while you still can. Even when you have equity, if you are slowly seeing it disappear, then it’s probably time to find a new home.

If you find yourself any any of these situations, there are still options to save your credit and prepare for the best possible outcome. Two of the most popular options for homeowners in this situation are a short sale and a deed in lieu of foreclosure. For either of these options, you should seek the help and advice of a foreclosure and real estate professional. There are drastic consequences when these options are not performed correctly, but either can help you save your credit and get a fresh start.

For most situations, keeping your home and continuing with a lower monthly payment should be possible, but if you meet the criteria above, you’ll want to review your situation with a professional and make plans for the best possible outcome.