Rr8899 There are a few options available to you. Have you called your lender and tried to get you loan modified? Sometimes a lender will work with you to help you keep your home. They would rather have you there taking care of the home and paying rather than go through forclosure.
There is also the option of short sale where you sell the home for less than is owed on your loan and the lender releases the mortgage so it can be sold. The lender because you are selling for less than is owed absorbs all the commissions so it costs you nothing to sell the hom

If you want an agent to talk to let me know. I work in Ohio but can get an agent that works with short sales in Florence to give you a hand.

Jim Gordon
Sibcy Cline Realtors®

Have you contacted you lender regarding a loan modification?

I have observed a huge increase in the number of loans the banks are agreeing to modify. If you have some income coming in and a desire to stay in your home it's worth contacting your lenders loss mitigation department.

If you decide to go this route make sure you contact the LOSS MITIGATION DEPT., if you call any other dept it's unlikely that you will get very far.
http://www.portlandareahomeinfo.com

Explore the various options that are available to you:

Bankruptcy - talk with a Bankruptcy Attorney - some will say that Bankruptcy is better than Foreclosure.

Short Sale - interview a couple of Real Estate Agents that are experienced in Short Sales, to see if that is a possibility.

To do a Short Sale, you will have to provide financial statements and other documentation to the Lender to justify your position. Not all Lenders will agree to a Short Sale. It may be more advantageous for a Lender to go ahead and foreclose on the property. The problem gets further complicated if there are second or third mortgages, or other liens involved.

Be aware that a Short Sale may have serious legal and tax ramifications.

Speak with a CPA or Tax Professional to discuss the tax consequences. According to the Internal Revenue Service, "if you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable". You may wish to familiarize yourself with The Mortgage Forgiveness and Debt Relief Act of 2007:

http://www.irs.gov/individuals/article/0,,id=179414,00.html


You should have an Attorney review all documents prior to closing. It is not uncommon for a Lender to "agree" to a Short Sale, but later come after the Seller for the deficiency / loss. (You do not want Bill Collectors harassing you later, for a debt that you thought was paid off.)

Please realize that a Short Sale can be a long and tedious process. The Lender does not become a party to the contract, but they must approve the contract before the sale can go through. The amount of paperwork involved in a Short Sale can be staggering. Lenders may take weeks or even months before responding to submitted documentation.

Best wishes to you,
Fred

I would consult a realtor to see what your house is worth. Find one who also has short sale experience as you may need to go that route. You can prevent foreclosure. Key is to address the situation before it gets too late.


Best of Luck


Sean Dawes