You may have received a notice of default from your lender or you just know you can not continue to make payments on your home. Either way you know that you are facing foreclosure. With the credit crunch we are facing you are not alone. You should know that there are options available to you.

Recently I attended training on Loss Mitigation Consulting and a second class on Short Sales. Even I was surprised at just how far lenders and loan servicers are going to help people out.

The most important thing I can tell you is that you need to call your servicer. This is an absolute must. Ignoring the phone calls or letters from them will do no good. I know and understand you are facing a scary situation. I know that many things are uncertain to you at this point but I can begin to explain just how important it is to communicate with your loan servicer. When you call, be sure that you ask for the "Work Out Department" Most likely any number you have is for the "Collections" department. Most likely it is the collections department calling you and demanding you make all of your late payments right now. The Work Out Department is different, looks at the situation entirely different and wants to work with you.

Some of the options you have available to you might include (depends on who has your loan)

1. Refinance
2. Loan Modification
3. Repayment Plans
4. Forebarance of payments to the end of the loan.
5. Short Sale (selling the home for less than you own, but having it accepted as full payment)
6. Deed in lieu of Foreclosure (giving your home to the lender as full payment to avoid foreclosure)
7. Assumption (sometimes someone may be able to take your loan over for you)

The options available to you will depend on your servicer. The most important is just calling and talking with the loan workout department. If the process seems to intimidating or you can not find your way through the system you can call me and I may be able to put you in touch with the right people.

Many times the best option available to you will be the Short Sale. Should you decide it would be best to sell your home as the other options will not work for you then contact me for more information on Short Sales or selling your home for less than you owe on the home. This will also require permission for your lender. A Short Sale, despite its name does not take a short time. There is much more time and effort involved in short sales, many more people involved in the process so it is important to get the process started immediately if you choose this route. Contact me immediately should you be interested in this option.