Vicky,
This question doesn't have a simple answer. There are a lot of things to consider i.e. what is your home worth, what would it sell for, can you modify your loan, do you need to sell as a short sale and negotiate with the bank, what is your other debt. Be sure that whomever gives you advice is actually familiar with what they are talking about.

You need to act fast! I can lower your mortgage payments without having to refinance your loan! We can stop the foreclosure process with the many connections we have at banks! Call today and start saving tomorrow! 877-822-7468. I look forward to helping you with your present situation!

Danielle

Vicky- If you can save your home, do it! Contact the bank and see if they can work out a payment plan with you. If that is not an option see if they would agree to a short sale, I have done many short sales in your area (a short sale is when a bank accepts less than what is owed) In your area depending on the condition of the home you should be able to clear your 400,000 debt. my office is in Pearl River feel free to set up an appointment for me to go over all of your options so that you may pick which one is best for you. If you choose to sell it is important that you secure a place to live before a short sale is final because it will affect your credit score.

Make sure you have all the facts before you make any decision for a free report go to:

http://www.savemefromforeclosure.com/freereportsignup.php

David Arriaga
845-794-2947

Hi Vicky,

Hopefully I can still help. You have gooten some good advice but be careful. If you decide you want to try to keep your home and refinance, make sure you are dealing with an honest mortgage broker who will tell you the truth. If you want to try to save your credit, then definitely find a real estate agent whom you can trust. Have them deal with the bank about selling your home. A short sale may need to be done, but that will depend on how much you owe and how much your home is worth.
I am a local agent, so you can reach me at 845-642-0835 if you have any questions.
Good Luck

Vicky-
There are alternatives. I work with a company that specializes in short refinance for the homeowner who is in your situation and wants to keep their home. Be careful of who you deal with because there are many scammers out there who are trying to take advantage of people in this same boat. Please feel free to call me to discuss your options. 800-961-1670x 137

Vicky
You might want to read my four part blog on the foreclosure process.

There are options. Please review then get back to us, post a question, or discuss with your Realtor. Note that on December 22nd Congress passed a new law that prevents a homeowner from being taxed on the foregiveness associated with a home purchase mortgage. Your CPA has the details.

Good luck. If you can work it out, ,keeping the home is best. Your lender does not want to foreclose.
Keith
http://activerain.com/blogsview/125091/How-The-Foreclosure-Process

It's always worth avoiding foreclosure if at all possible. As Cheryl said, there are a lot of options out there. Most people just "give up", but if you keep working the process, you can renegotiate with the bank and/or negotiate a short sale. Finding a great local Realtor is the first step. Make sure they understand your situation and make sure they have some experience with short sales.

Vicky you need to run and find a Realtor who can help you with this situation. But first, call your lender to see if you can work something out. Most lenders will allow you to continue making your mortgage payment and also make an arrangement to pay back the amount you are behind on. Time is your enemy, so run quickly for help!! There are options and a trained professional will be able to negotiate those for you.