Short Sell Or Keep Your House? Follow These Steps To Decide

Are you one of the large number of home owners who are underwater in their mortgages? Are you having trouble keeping up with your mortgage payments, but want to stay in your home? It’s true that some people may be better off with a short sale or even a foreclosure, but there are others who may be able to keep their homes.

Let’s walk through the steps in determining whether or not you can or should keep your house.

  1. If you have reached the point where you can no longer make payments, or are depleting your savings making payments, go to the next step.
  2. Decide whether you want to try to keep your home or not. If you decide you do want to keep your home, read on.
  3. The next step is to look into a loan modification. Call your lender and ask about two programs: HAMP and HARP. You may be able to qualify for these government assisted programs. If so, you are on your way to keeping your home. If not, or if the modification does not make your house payments affordable, then keep reading.
  4. Your next stop should be a visit to a qualified real estate attorney. Get a written legal opinion on your deficiency liability. It is critical that you understand the financial ramifications of the next step.
  5. The attorney recommends either a short sale or a foreclosure. In some cases, a foreclosure may be better for the homeowner due to increased deficiency protections. In other cases, a short sale may be the route to take.

If you decide you can stay in your home, congratulations. If a short sale is best for you, then make sure to hire a qualified short sale real estate agent to help you work through the process.