A foreclosure is generally the worst outcome. It may alleviate some current distress, but you'll live with the consequences and added stress for longer. The right answer may or may not be a short sale. I have all my clients do a consultation with an attorney who lays out the options, short sale, bankruptcy, foreclosure, loan modification, just to name a few. Forestalling a foreclosure in Washington is not uncommon or difficult and can buy you time to resolve many issues.
Contact me and I'll forward my attorney's information for a reasonable priced consultation (they have even provided free ones at times) to see what is best for you.
Northstone Real Estate inc.
In no case do you have to comply.
One thing you might consider is a deed in lieu of foreclosure. You essentially give the house to the bank without the mess of foreclosure proceedings. It may not be quite as damaging to your credit, too.
Make sure you're comfortable with your decision, whatever it is. Then stick to your guns.
Hope that helps.
(Check http://www.WorldsBestCredit.com to get your credit repaired by yourself.)
There have to be some reason your house is not selling as a regular listed sale. It may be just a slow market in your area, the asking price above the similar homes, house has deferred maintenance or other defects and it is less desirable to financed home buyers...
An experienced agent will put the house on market for just long enough to show the bank that it is not selling as-is, at certain price point. Then they will approach the bank and propose ways to mitigate loss for the bank by doing a short-sale because foreclosure damages the bank as well as for you. Once the bank agrees to try the short-sale route, you actually have more time to keep the house until it gets sold or the bank decides to not wait on short-sale any longer. Your agent would rather sell it for less than to lose the sale to foreclosure, because they will not get any commission.
So, it's not a bad option to avoid foreclosure by doing short-sale, at least for now.
I buy houses that need work, so if your house needs some rehab, have your agent contact me.
It may be wise to consider a short sale if you can't sell your home at this point, either that or a refinance/modification. The reason is that most lenders will require that you wait 3-7 years after a foreclosure before they will consider you for a loan. It might not sounds like a lot of time, but paying rent on someone else's property for 3-7 years, especially in an environment of rising home prices, could set you back significantly. If you live with someone else, and both of you are on the loan that is foreclosing, you may want to consider some other options.
I understand how you can feel. Faced with uncertainty can be daunting. At some point, the lender will have to step in if you are in default. Talk with the bank to see what are your options. A short sale is not necessarily a bad thing especially if you want to be done with it and move on.