I am sorry to hear this. Before you do anything go to the link below.

"Don't Borrow Trouble is a national anti-predatory lending and foreclosure avoidance campaign that combines education and empowerment – teaching consumers to protect their homes and finances."

http://www.dontborrowtrouble.com/

Piccola Dowling
Real Estate Consultant
Long Realty Company

Hi Lisa, I am so sorry about your current situation. Times are certainly tough and you are not the only one in distress with their mortgage. I am happy to take a moment to speak with you regarding some options that could be available for you. I have helped many families save their homes from foreclosure simply by communicating with the lender. Please do not walk away from your home, there are options. Foreclosure on your credit report will definately not be in your best interest. Let me know if I can help in any way.

Sheila Gerken-Worley
The Best Seller GMAC Real Estate
3072 Hwy K&N Plaza
direct 636-299-1884

For credit counseling call 211. That's a hot line with counselors who can sit with you and help you work through all the details to figure out what works best for you. Talking to us, when we really don't know your particulars isn't going to help you as much as talking to someone who you can sit with one on one and let them walk you through each of your individual issues.

the site below may be of help....it has info on both shortsales and foreclosures....

NO NO NO, please do not walk away! I have helped many families through the process of a Short Sale. A short sale is where the bank will allow you to sell your home for LESS than the balance due on your loan. It is a rather lengthy process and you will need to hire a Realtor to assist you. Make sure your Realtor has plenty of experience with Short Sales. The success of the sale relates to how your Realtor interacts with the Bank. I have performed many Short Sales and closed every one successfully within 5 weeks. A short sale has less impact on your credit as well. You do not want a foreclosure on your record. Please call me if I can explain more in detail the process necessary. Do not walk away without first trying a Short Sale! You do have options!!!

Sincerely,

Sheila Gerken-Worley
The Best Seller GMAC Real Estate
636-299-1884

"Short Sale Specialist"

I agree with Sandie that your best bet might be through your current lenders. However, it may make sense to look at an FHA refinance. Different appraisers can come away with different values - it's entirely possible that the information you've got about your value may not be the final word on the matter. With an FHA refinance, you could combine your current 1st and 2nd into one loan at a rate at or near 6.0% regardless of your credit score. If you have not yet gone over 30 days past due on your mortgage accounts, this is an option I would look into on top of being proactive with your current lenders.

you need to be aware that many of the lenders are not forgiving the difference between what is owed and what the home sells for on short sales. They are making the home owner sign a document agreeing to pay the difference off over several years when the home is sold. Often the home owner is not told that until they are at the closing table and the papers are put in front of them and if they don't sign and the home doesn't close as a result, the buyer can sue them.

The banks are not forgiving the loans on the homes if you have any assets that can be used to pay off the loan - ie if you have savings accounts, retirement accounts, other homes, other assets, they have the right to those. They also have the right to look at your income tax and pay statements for the past several years when you file for short sales and foreclosures to make sure that you really have a financial problem and are not just handing over the home to them to get out from under the payments because you don't want to pay the loans off (because some people are trying to do that).

In St Louis, I would suggest that you contact Better Family Life, Beyond Housing, or Catholic Charities. My understanding is that they are running special programs to help guide people through the process of determining the best route to take when they are in your situation. I understand that they have counselors available who can go through the paperwork with you and help you determine what your individual best solution is. Good Luck

Dear Lisa,
It is in the best interest of your future to try to work out things with your current lenders. Most lenders would rather not foreclose because it is a very costly process and not only do you lose, so do they. Have you attempted to see if they will spread the payments out over 40 years instead of 30? Trying to get out of this will not only ruin your credit, you will then be paying rent instead of building equity. Is there a family member who could co-sign for you and help you refinance?

Sandie Hea, CRS
RE/MAX Results
314-951-1908

Lots of people unfortunately are in the same situation. Both foreclosure and short sale reduce your credit score by about 200 points for about 36 months. I am not a banker just a Realtor so I would double check those facts...I got them from an article on Short sales. Make sure and ask your mortgage company for hardship paper work and request the short sale if that is route you want to go. Foreclosure is suppose to be worse for your credit than a short sale. I have sold a lot of homes short sale and it takes patience and direct marketing advertising exactly what you need. Don't feel too bad there are a lot of home owners everywhere going through what you are.
Cheryl Cooper

Are you currently behind on payments? If so, have you talked to anyone about selling your property as a "Short Sale"? In easy quick terms, a "short sale" is just like selling your house with a REALTOR, but the bank/Mortgage Lenders have to approve the purchse price offered by the Buyer. The Lenders decide if they will let you sell the home for the Buyer's Purchase Price Offer and if they will "forgive" the remainder of the amount on the mortgage note. With a credit score of 615, it will be difficult to get any lender to refinance your loan. A Real Estate Investor might be able to help you out by taking the property for you. If you let the home go into Foreclosure, your credit score will be severely lowered. Lenders, right now, are requiring 4 years after a Foreclosure to be able to qualify for a loan (which do not have very good terms). It might be more than 4 years before you can buy in the future considering the tightening of the Mortgage Lendering Industry. Since your credit score will be so low, it will be difficult to get any credit or loans for the 4 years. Landlords might not consider renting to you if they have a minimum credit score criteria or have a criteria to not accept anyone who has an active foreclosure on their credit report. If at all possible, do not go into Foreclosure. There are options: Short Sale, Real Estate Investor, talk to a Lender who is willing to discuss options with you like Lindell Bank, or talk to a Government Housing Assistance Agency. I hope you are able to find a solution.

Sincerely,
Nancy Linder, REALTOR and Real Estate Investor
Keller Williams Southwest