You possibly read my post on Credit Consequences of the Short Sale. I wanted to share with you another story. I decided to do it in a separate post as while it is sad story it is also a wonderful example of human spirit, honesty and ingenuity.

Yesterday, I received another call from a homeowner with a question regarding options to get his life back on track. He and his family came to this country 7 years ago. 3 years ago they were able to fulfill their American dream and they bought a house. The house was very expensive and monthly payments were high. He had to refinance it and take additional equity to stay afloat. The mortgage payments continued to be hard to make, but he persisted in his struggle to make payments on time. His house lost over 20% in its value, but he continued making payments. Late payments or default on payments was not acceptable options for him. He depleted his savings to protect his FICO score (it is still above 750). Unfortunately a few weeks ago he lost his job (his wife is not working as she is taking care of their two young children). The struggle to keep making payments depleted all their cash reserves and they started to borrow against their credit cards. Like many others in the Credit Consequences of the Short Sale post, he will have to resort to drastic steps to get his and his family lives back on track. But what is really remarkable about him is that he came with many very creative ideas of how, with a little bit of help from his lenders he could get back on track. As lenders will not listen (they simply have no system in place to do so and are overwhelmed by the sheer volume of mortgage defaults), he will attempt to sell his house "short" and in the process of the short sale to present his ideas to loss mitigation departments for consideration.