a) If the owner has equity in the house and cannot pay the mortgage, the best bet would be to sell the house as quickly as possible and take the equity you have with you. If the bank forecloses, all your equity will be lost!
b) If there is no equity in the house and you can afford to move out and find a place to live, you can either try to negotiate a short sale with the bank that holds your mortgage or offer to give them the deed "in lieu of foreclosure." This means basically handing the bank the keys without a fight.
c) If there in no equity and you have no money to find a place to live, you will simply have to accept the fact that the bank is going to eventually foreclose on you and start making plans as to how you are going to live once they throw you out of the house which will happen eventually.
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783