I owe 225 on a house worth 175-190,000$. I can no longer afford my mortgage payments. Do I sell and take the loss or walk away. Whats my best option

Asked by Willydee77, Croydon, PA Fri Sep 18, 2009

Help the community by answering this question:

+ web reference
Web reference:


Kim Tokar Te…, Agent, Langhorne, PA
Wed Oct 13, 2010
Short Sale is always the best option. http://www.AForwardMove.org
Web Reference:  http://AForwardMove.org
0 votes
Brian Luce, Agent, New Hope, PA
Wed Mar 10, 2010
I agree with Cinnamon and Terrence,

Great information. For oWilydee77 and others in the same situation:

As hard as it gets, and no matter what information you read (often mis-information), don't walk away. I grew up in Bristol and Levittown and have friends in Croydon (not that it matters as this is happening everywhere).

I'm an agent and also a Director for P.A.R. (PA Association of Realtors). We've been discussing these situations with local, state and federal government for quite some time. Help can't come fast enough. We are seeing quite a number of situations just like yours.

You are not alone and there is help available as mentioned. Please keep that in mind. Too many times, homeowners are not willing to contact the mortgage company and they "suffer in silence". Contacting your mortgage company is the first step. Knowledgeable agents can also be a great resource.

Beware of companies trying to "help you out for a fee" or that suggest putting the home in their name etc.

In this economy, for many agents it's not just "about getting a listing lead", it's about helping individuals and community. Along with the other agents that have posted, I'm also available ANYTIME to help guide you to the proper information. Being a REALTOR isn't just about selling a home or getting a lead. I'm here if you need me (as are the others).

Good luck with your situation. It does get better.

Brian Luce ABR, CMMS, CMRS
Weidel Realtors - Doylestown
215-348-5600 x 122
0 votes
Cinnamon Bof…, Agent, Bensalem, PA
Sun Mar 7, 2010
Each case is different when it comes to doing short sales. You should have a realtor who understands short sales go over your hardship, income, and debt.
Depending on who is your mortgage company, some of them will work with us from the beginning to get the home sold.
If you have an FHA loan they will pre approve the price they will take before it is on the market. On April 5th HAFA regulations start and that may help you also.
Give me a call and I would be happy to go over your options, and as always it is smart to seek the advice of an attorney and accountant or both.

Cinnamon Boffa
ReMax Realty Services
1955 Street Rd
Bensalem, PA 19020
0 votes
Terrence Cha…, Home Owner, Allentown, PA
Fri Sep 18, 2009
NEVER walk away. This will hurt your credit much more with a foreclosure on your record. You can work with your lender by going for a short sale. Basically, you would sell your home and the proceeds for the home will not be able to pay the loan. Then, if your mortgage company oks it, the balance of the loan can be "forgiven" or dropped and it would be given to you as "income" and you would get a 1099-MISC at the end of the year for it. Then you just need to worry about paying the taxes on the balance instead of owing the whole balance to the lender. But this greatly depends on who you are working with.

Also, if someone has recently lost their job in the family, you may be able to get assistance. Mind, this requires getting yet another loan, but it can help IF the situation is temporary. Just get in touch with the Pennsylvania Housing Finance Agency (PHFA). They have a program called the Homeowner's Emergency Mortgage Assistance Program (HEMAP) which may be able to provide assistance. Their number is 1.800.342.2397 and the website is http://www.phfa.org .

If your only recourse is to sell your home as a short sale, find an agent who KNOWS the right people to get with at your lender. And as a clue, it's not the person in the collections department. Do not go with someone who just says they know. If you get a offer in a short sale situation, you don't want to wait for several weeks or months before the bank gets off their butt to respond. You and the prospective buyer would want an answer within a few weeks.

Hope that helps,

Terrence Charest, e-Pro
0 votes
Search Advice
Ask our community a question
Home Selling in Croydon Zip Codes

Email me when…

Learn more