Clients finding themselves OWING more on their house than it is worth are in a painful predicament for sure these days and UNLESS they are playing the game of STRATEGIC default walking away from their homes with jingle mail giving the keys back to the lender with foreclosure, they have just a few options.
Stick it out, till they can sell, even at a loss.
Short sale, negotiating to sell for less than amount owed, but market value.
Rent the property to move on and sell later
Loan modification, to assist with now perhaps lower interest rates to at least get some cost savings in the monthly payment but still sticking it out till the local market recovers.
The key thing with short sales, foreclosures, sticking it out, filing bankruptcy etc. you need to decide if it is time to MOVE ON with your life with relocation necessary for a job, a marital change, a lifestyle change, etc. Check with your financial advisor to see what makes sense in your own individual case. Life is too short to stick it out and be miserable if that is not working for you.
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