Hi, Sewsew. I'd NEVER recommend a foreclosure. It mars your credit for 6+ years plus you may have a hard time even finding a home to rent (almost all landlord run a credit report). You're almost always better to do a short sale. Here's an article of short sales: http://clovisexperts.com/2009/10/23/clovis-short-sales-the-3…

There is a Program Called HomeSaved with NACA that can help you Their Number is 1-888-302-6222 or you can go onto their Website as NACA.COM Go and check it out. It has helped alot of people from all over the United States.

I am sorry you are going through this rough time. Please contact HUD at 1-800-569-4287 for free help with making the correct decision for you.

It's always better to short sale. You should act quickly, so your credit isn’t damaged to badly by the late payments. By doing a short sale, your credit report will show "Paid as agreed, not in full" (If your agent negotiates it properly). But a foreclosure will damage your score much more, while showing "Foreclosure".

I won’t toot my own horn, check out my blog...

Another question I have is do you believe you will find a job in the near future? Under the home affordable modification program you may be able to greatly reduce the interest rates and payments on both loans for 5 years. (2nds to as low as 1%). The rates will go back to around 5% five years from now, which could give you a chance to regain equity in your home. You must be employed to qualify. If you have recently missed a payment, under current foreclosure law it will take the lender up to 8 months to foreclose, giving at least one of you time to get employed and keep your home if you want it.

If you do not believe you will become employed in the near future or don't wish to keep your existing home then a short sale would be the the second best option, allowing your credit to heal faster than a foreclosure, so when things turn around for you can get back on your feet.

Good Luck and hang in there.

The answer to that question would most likely be to do a short sale. Getting a short sale approved with a first and second can be tricky and tedious, but manageable.

A short sale is better for you if you plan to purchase another home some time in the relatively near future. Depending upon the lender, a short sale can be reported on the credit reports in a manner not as derogatory as a foreclosure does. Therefore, your ability to purchase a home again is sooner than if you were to simply foreclose.

Hope that helps! Good luck to you and it will all work out for you. Keep your focus on the finish line and remember that you can only do your best, much of the whole lender process and decision making is truly out of your control.

Diane Wheatley, Broker
diane@moveupproperties.com
(909) 815-4499

In your situation, it sounds like loan modification will not be possible. But, it is always best to at least inquire by contacting your bank directly to request a loan modification. The next best option is a short sale. Your credit is impacted less than with a foreclosure. Foreclosure would be your last option.

If you would like to see if your home is a possible candidate for a short sale you can reference my website at http://www.homesinfresno.com/selling-short-sales.asp

I have specialized in Fresno, California real estate for over 20 years and am one of the top selling short sale agents in the area.

If you have some income. you have a possibilty to modify your loan. There are Governmatal programs available. Even if you are collecting unemploement benefit you may be elegible to get LoanModification. see lattached link for add. info


www. loanmodsfbayarea.com

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