We continue to get questions from our clients on the "what if?"

What are your options:
Deed in Lieu of Foreclosure: You basically give title back to the bank.
Forbearance: Temporarily freezing the monthly payment due on your mortgage.
Loan Modification:  The bank changes the terms of the loan.
Short Sale: You sell the home at a market price and the bank agrees to the sale with conditions.
Foreclosure: You stop making the your mortgage payments and the bank auctions off your home. 
Refianance:  No explaination needed.
Reinstate Your Loan:  Pay all your back mortage payments, plus late fees and legal fees.

What if I still owe the bank money:

The lender may agree to short pay of and a full release of any underlying debt.  They may ask that you sign a promissory note for the difference. They may ask that you pay part of the difference.  They may reserve the right to come after you for the difference.

How will my credit be affected?

There is loads of information on the internet but the best example I have come up with is that a short sale is like a smash in your car bumper and a foreclosure is like totaling your car.

If anyone out there in AR Land has tips or advice please share!