1. If you are looking to do a loan modification you may contact your mortgage company directly to facilitate that. It does not cost anything. A lot of scam artists are charging people thousands of dollars to "consult" on a loan modification without any kind of guaranteed result. This can turn a bad financial situation into a worse one.
2. If you choose to short sale your home all realtor fees are paid by the bank. You have no financial obligation for the real estate professional that sells your home, so choose the best! I've talked with many home sellers that chose to work with "discount brokerages" for a short sale because they were concerned about being able to pay commissions, the result has been a sloppy, ill prepared short sale process that's frustrating and ultimately can lead to sale failure and foreclosure.
3. Keep open lines of communication with your mortgage company! Not only can they not force a short sale, they may have options available for you to help get you back on track.
Best of luck!
Your best option is a loan modification, perhaps you qualify for the Home Affordable program.
If you feel you're up to it, you can negotiate directly with your lender. If not look for a loan modification company that is certified by National Home Loan Advocates. A legitimate loan mod company is not going to make you pay up front, but will be paid when they have helped you.
Like Spencer stated, either loan modification or short sale are your best options.
1- Loan Modification, could be a reduction in principal as well as payment, but again this all comes down to the bank.
2- A short Sale, which is contingent upon what the bank will do, and normally they are just concerned about market value. What the asset is really worth
3- Foreclosure, and who wants to go through that.
So those are your options in this type of scenario. I would recommend contacting an agent who understands, and has experience in these areas. They will be able to help you accordingly. But please do something, there is no reason to face foreclosure with options on the table..
I had an agent call and ask me to have one of my short sale listing quit claim (give the home to them) the home to their client and they would get the bank to accept a very low price. They would market it as a sale to the public during this time 90 days and get a retail buyer and make $30,000 as a simultaneous closing. They could do that because they had the home quit claimed to them for 90 days. I'm sick of this type of unethical behavior. If you ever are ask by and agent or anyone else to sign a quite claim run way and turn them into the state.
Watch out for the misinformation even Realtor will tell you:
1. You wonâ€™t owe taxes if it's your primary residence. This is only true if the mortgage being short sold was your purchase money if you took cash out of your home on a refinance or 2nd mortgage that is taxable income if debt is forgiven. If you took cash out you will own taxes on the forgiven amount what the bank gets less what you own. If can be $100,000 or more of taxable income 1099 to you. What out don't get hurt know the facts call the project.
Call the Project 800-604-0281 they will help you create a future if youâ€™re facing foreclosure!