Foreclosure is one resolution when a homeowner finds that they can no longer afford to make their monthly payments. But there are other possible solutions.
1) Attempt a workout with the lender. Call your lender and ask them if they can offer you a loan modification whereby your payments can be reduced or you can get a reduction in your interest rate.
2) List your property with a qualified agent to do a short sale on your property. This is where the agent would represent you to negotiate between your lender that has the lien on your property and a potential buyer to ask the lender to accept less than what is owned them by the owner.
3) Deed in Lieu of Foreclosure. This is where you would trade the ownership of the property to the lender in exchange for the cancellation of the note.
4) Lastly, let the property go all the way through the foreclosure process and be forced to leave your home. Under certain circumstances, this cannot be avoided.
The best solution in today's market, in my opinion, is to try for a short sale. Most lenders who used to be pretty unco-operative in proceeding with a short sale, are now doing a full circle and are now quite open to the short sale process. They are finding out that the short sale is a win win for both the homeowner and themselves, as usually the lender nets a much higher amount from a short sale than they do from a foreclosure. Locate an agent that is a short sale expert to help you get through the process quickly and with as little pain and frustration as possible. I am a qualified short sale expert with a designation as a CDPE (Certified Distressed Property Expert).
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