I would advise them to seek the following council
1) Talk with a Lender
2) Talk with their own lender regarding Loan Modification
3) Talk with financial tax advisor
4) Talk with a Real Estate Attorney
With that information, they should be able to make an educated decision for themselves.
Make it an Amazing Day!
Since my background is in mortgages, I would say that they have a few options:
1) Stop making payments and try to force a short sale.
2) Negotiate new terms on their existing mortgage with the bank (loan modification).
3) Rent out the property to someone else (until things turn around) and find another place to live (either rent or buy).
There are pros/cons to all of them, it just depends what your clients are willing to sacrifice. Best of luck to you (and them)!
Timothy M. Garrity | Brown McKinney Real Estate, Co.
Real Estate Professional & Consultant
email@example.com Email| http://www.brownmckinney.com/tim Website
215-825-2250 x 1007 Office | 267-879-2716 Mobile | 267-318-7004 Fax
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
and after about 60 days they were approved for the short sale, unfortunately the house never sold after 1 yr & they
ended up losing it to the bank anyways. But they should at least try , they have nothing to lose at this point -do they really?. Maybe a family member can move in with them to help them catch up or put them on the mortgage? that was a couple of the suggestions the bank mentioned as well.
Best of luck!