I know times are tough, and it is in "fashion" to blame the banks, cuss everybody out and just stay in your home until they kick you out! I am not going to lie and say sometime foreclosure may be your option left, BUT in alot of cases you should look at other options. The first of course (assuming your are upside down in equity) is a loan modification. Modifications are not easy, they are time consuming, and its like a puzzle. You got to make sure you put the correct pieces together for the picture to come out correct. Loan modifications are very good if you have had a hardship, but the hardship is now corrected or you are in a position to make payments now (even if not the original amount you agreed to). Next option is a short sale. Why do a short sale versus just walking away? Major reason is the credit and tax implications. It is to you advantage to do a short sale if for nothing else the fact that within a two period you will be eligible to receive a new home loan at favorable terms, down payment, and interest rate! Don't let temporary situations determine your long term future! If you have a slight cut, you would put a band aide on it and not stitches! I have been in this real estate game a long time, and trust me you will be so happy down the road if you did a successful short sale versus walking away in foreclosure. It could be big in your financial future forever!
Biggest thing you should do is not wait to do something, and even if you, don't think it is too late to figure something out. We have had foreclosures stopped the day of sale, we have had loan modifications and short sales denied, denied, denied and then approved! Its tough, but things can happen. DON'T GIVE UP ON YOURSELF, DON'T GIVE UP ON GOD, AND KEEP A COOL HEAD! You can win!
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