The first thing you need to do is ask yourself .... do I want to stay in my home? If the answer is yes, then you need to call the bank you make your mortgage payments to. When you get the customer service department ask to be transferred to the loan modification department. Once there, tell them you would like to apply for the "MAKING HOME AFFORDABLE" program.

MHA was announced by the U.S. Treasury in March and banks are just now geared up to offer it to at-risk homeowners who want to save their homes. It doesn't cost you anything but your time. Beware of loan modification companies who ask you for money upfront and then disappear.

You can do this so don't wait ... call your mortgage company.

All the Best!

Barbara

A Short Sale is an option but read these direct quotes.
The source is linked below.

There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current this can be an option.
In real estate, a short sale is a sale that happens when the outstanding loan against a property is greater than the market value of the property itself. A short sale represents a solution for a homeowner who cannot pay his mortgage and wants to walk away from the property without blemishing his credit and financial profile through a foreclosure or bankruptcy declaration. Not all banks will consider the short sale, but many will. You will need a willing lender/bank and buyer to complete a short sale. Also, know that lenders will almost never do short sales for properties with Second Mortgages.[1]


1.
http://homebuying.about.com/od/shortsale/f/081009_Approved-S…
http://www.howtodothings.com/real-estate/a3395-how-to-short-…

Make sure this is your last option. Maybe you can sell one of the properties and make sure you know what they are worth. Getting a new aprasial is the best "Now Investment "you could make if you don’t have one already. Talk to a RESPC!


Financial Specialist/RESPC
Hawthorne Capital Corp.
Phone: (212) 231-0062 Ext. 5183
Cell: (347) 819-5682
Email:
To: LizSteeleSP@gmail.com

You don't have equity from what you're saying here. you need to short sale the home.

Look at this blog it will help you to learn more about your situation.
I've got most of my answers there as well.

Good Luck.

You may wish to stay current on your payments because Fannie Mae guidelines say if you don't have anything worse than 30-day late on your credit and you're not required to pay back any of the deficiency, you may qualify to buy another home immediately.

Also, be aware that you may be subject to California state tax due to mortgage debt relief, but I can refer you to a few tax accountants who specialize in short sales. It's possible you may qualify for an exemption from this taxation, but you have to complete a special form within a specified time period to qualify for that exemption -- something a tax accountant can tell you more about.

Much also depends on who has your loans, and whether the second is hard money, which is why you should also get legal advice.

Short sales are a complex process and you really need a sacramento short sale agent who closes a lot of these to help guide you through the process.

Please do not panic! If you would like, I am more then happy to meet with you and discuss your options. You may call me directly at 916-804-2981

Sincerely,

Michelle Thompson
Realtor-Lyon Real Estate
916-804-2981

You may be able to do a short sale ( hardship due to divorce) sit down with a trusted Realtor now and start working on your options.

I need more information than you have provided to advise further you may phone or email me direct if you like

Best of luck

Don't Panic Soon,

E-mail me and I will send you a flowchart of options available to distressed homeowners.

Rob Spinosa
rspinosa@mortgagemasterinc.com