You know, you might try listing your home here on Trulia for 195K, give us some details and photos. That's exactly the kind of house my wife and I are looking for and I'm sure we're not the only ones. You may still be able to sell.

Hi Susan,
Maybe you can get a second job to make ends meet? Good Luck

Susan: If you begin the process with a lender to re-negotiate your loan or strike up some deal in lieu of foreclosure, they'll start asking you a lot of questions to see if they're actually get somewhere with the renegotiation. Among those are: why can't you afford the payments? What is your present income? What change in status has occurred that makes it difficult to afford the payments? Be prepared to answer those questions as accurately as possible. They may even ask if you are able to get another job, either switching from what you may presently have or adding another. Short-selling with a deficiency may be an option, but it may not be the best one. It still has a major economic impact to you personally. The first thing I would consider is this: what else do you own outright that you can sell? A TV? A car? A motorcycle? A boat? Many of these items are far more liquid and easier to sell than a $195,000 house. Another thought is to examine your budget, and if you don't have one, create one. Figuring out your annual expenses on and seeing what your monthly average is will help indicate other places where your money is going. MS Excel can be a great starting point and an easy to use piece of software to figure this out.

The bottomline: foreclosure is one of the most detrimental financial circumstances an individual can find themselves in. The ramifications will last for years and may lead to bankruptcy as well (which usually is not as damaging to creditors). Whatever you can do to defend the home is probably the best first option. Homes are selling in Colorado Springs, but demand is off almost 20% from the year before. Fountain Valley has a lot of inventory from $180,000 to $220,000 and not a lot of buying activity (although huge rental activity).

Don't give up, Susan. Don't let the foreclosure process begin, and don't be passive. It sounds like your statement "as of this month I can no longer afford my mortgage" means you are current and are looking with shame at a month when you can't make a payment. If that is true, you are already being extremely proactive by asking questions. Over 70% of those who go into foreclosure NEVER discuss things with their lender. You haven't missed a payment yet and are asking. That tells me that you probably have some decent options out there because you still have time.

Susan,

I'm not in Colorado springs area, however, You do need to talk with a knowledgable Realtor about various options available. such as new legislation in Section 1403 of the new housing bill that was signed into law on July 30, 2008 (HR 3221). It required mortgage servicers to modify loans for homeowners and help them avoid foreclosure. Homeowners have to meet 3 requirements. Also in the state of Colorado, the Denver Metro area and other areas, like Colorado Springs there are funds and organizations dedicated to helping homeowners who are having difficulties in this economic climate.

Don't just let it go, something can be done and you need the help of people who are knowledgable in those areas. Please talk with an experienced Realtor about your situation. If you need names of good agents in your area. Feel free to contact me.

Susan,
I am sorry to hear about your situation. I'm sure you are feeling over whelmed with this issue. It is never a good ideal to let your home go into foreclosure. There are many options for you that the other agents have mentioned. It would be best to sit down face to face with an agent who has your best interest in mind and go over the details of your current loan, value of home, etc... If you have some time this week give me a call and I would happy to meet with you, look at your home and help show you what your homes current market value is. We can then look at your option on getting it sold in the least amount of time for the most amount of money. Or we can look at the short sale options. There is alot involved that cannot just be gone over in a short email. Call or email and let me see what I can do to help you. God Bless you,
Pamela Weatherford
Real Estate Consultant
719.661.8672

HI Susan :o)

As your friendly neighborhood Realtor *smile* right here in Colorado Springs I want to tell you not to give in or give up just yet. As you describe your position, providing the lender who holds the loan on yoru property will not negotiate some kind of work through for you, I would recommend that you try to sell your property.

Despite all the gloom and doom in the media, properties in the Pikes Peak Region are still selling and people are still getting home loans.

I have successfully assisted sellers to negotiate and complete what are known as "Short Sales" with the lender holding the mortgages on their properties. These are transactions where the bank agrees to accept less than the amount owed on the property.

With the right strategy we may be very able to get you out of your unfortunate circumstances and it helps to have someone who knows and can assist you in evaluating your options on your side.

Feel free to take a look at my testimonials http://www.BrianWess.com/ClientTestimonials and contact me if I can be of assistance.

Best Regards
Brian L. A. Wess
CRS, GRI, ABR, ASR, e-PRO
Realtor®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
Direct: 719-528-6672
Web: BrianWess.com
             COLORADO REAL ESTATE...DONE RIGHT!™

I definately do not think Foreclosure is the best option... if you can avoid it. Talk to your lender. They may be willing to modify your loan; or perhaps approve a short sale. Check out http://www.nw.org for assistance if this is your primary residence. Also - if you have private mortgage insurance, talk to the insurer - if you have a VA or FHA loan - talk to the VA or FHA... if you have any special financing like that (like from a non-profit) talk with the entity that issues the loan or loan insurance. Read the post below for some general info.