Happy New Year to you. Sorry, to hear about your situation. You are not the only one, so there are proven paths to take right now. Paying a fee like this without considering the other options, could be a mistake.
There a several options to you. Click this link under the sellers section of my website for a review of the options: Financial distress? Homeowner finance options through HOPE NOW, click: http://www.arizonahomesland.com/forsellersorlandlords.html
There is also an excellent free webinar there to guide you through the short sale process if you are considering selling your home for less than the mortgage balance.
The advantages of a short sale?
1. You usually get to live in the home, often rent free during the process that the home is being sold and/or an offer and release of your debt is being negotiated with the bank.
2. Your credit although it will be negatively affected is better off than in a foreclosure. Often, sellers can re-apply in 2-3 years for a new loan if their other credit is kept up to date. The short sale is considered a mutual agreement settlement.
3. The difference between your loan(s) on the home and the amount the bank is shorted is negotiated and put in writing with a full, partial or no write off by the bank usually in a personal note. Depending on the circumstances of your mortgage, Arizona is a "Non-Deficiency" state, meaninng the bank is prohibited by law from pursuing you for the "shorted" amount.
As with any financial transaction of this magnitude you should consult with your accountant and/or legal representative to make sure that the non deficiency status in a short sale will apply to your personal situation..
If you need help getting the short sale process started, with the case opened with escrow, the bank, a negotiator for you and the home listed, feel free to contact me. Would be pleased to help you.
Jeff Masich, RealtorÂ®
Arizona Homes and Land
HomeSmart Real Estate