Understanding Options due to Hardship and Negative Equity situations

We discussed her various options, specifically, the pitfalls of a Deed in Lieu. It’s surprising to me how many people are presently in foreclosure, especially in the Bay Area. While she is current on her rising mortgage payments, due to the declining values in her area, she thinks she is currently upside down in her mortgage.

I met with her and listened very carefully to her particular situation. She is expecting a baby and knows that in the very near future, her husband’s income alone is not going to be enough to cover all the anticipated expenses. As a Short Sale Specialist, I carefully explained to her the consequences of a foreclosure, or, as a lot of people do, giving the keys back to the bank.

The negative impact in an individual’s credit is much greater with a foreclosure as opposed to a Pre-Foreclosure Sale, also known as a “Short Sale”. After I assured her that she is not the only person in this situation and that she has no reason to be embarrassed, I proceeded to explain to her the project plan to list her property and to assist her in finding a new home that will allow her to stay at home with the baby without the stress of an unaffordable mortgage payment due to an Adjustable Rate Mortgage.

After my visit and with the information that I had provided her, she and her husband called me two days later and listed their home with me.