You need to find a Realtor with short sale experience. From the lender's point of view, it is better for them (that means costs them less money), for a short sale than foreclosure.
Sometimes if a sharp Realtor contacts the bank they can negotiate the best outcome for your family. This means if they, as a professional, contact the bank, the bank knows that you have made decision not to just walk away , but to try to do the right thing.
There is such a thing as honor. You have a debt. A mortgage is a promise to pay. Let them know that you are honorable people and are not abdicating your responsibility. You may be surprised. They may honor your commitment and help you.
If you need a referral let me know.
Depending on the specifics of you situation a short sale is almost surly the best option. A foreclosure is devistating to your credit, ability to buy a home in the future, rates on insurance, ability to get a job, etc... A short sale has some negative impact but is much more short term...
You said the home was for sale as a short sale. Is it listed with a short sale specialist? Not for sale by owner or just an average real estate agent... you need someone trained and experienced in dealing with short sales to help in the situation.
Glad to hear things are improving for you but dont fall into the trap of just letting the house go... I think you will regret it later if it ends up in foreclosure.
If you have questions I am a Certified Distressed Property Expert (CDPE) and work the Springboro area and would be happy to answer any questions you may have or if need be discuss listing the home for sale.
Thanks and best of luck to you!
I would consult with an attorney and a CPA. They would be able to advise you on the ramifications of all three. Short Sale, Deed- in-lieu and a Foreclosure. Also a CPA will be able to discuss with you on any tax liabilities.
Short sale and credit. It is my understanding that the day that you close on the house is the day that you start repairing your credit.
With all 3 options you maybe responsible for the deficiency. Each bank is different. If you for some reason can not sell your home then you can ask the bank for a Deed -in-lieu. But, again make sure you have an attorney to review the paperwork and to make sure that is the right decision.
If it foreclose, your husband's credit will be affected more that what's right now, so it would be better to do short sale, at least you can avoid foreclosure from his credit. List with an experienced short sale agent and consult with attorney or CPA for any tax ramifications.