OPTIONS FOR DISTRESSED HOMEOWNERS:
2) Sell and bring cash to closing
3) Lender workout
4) Short sale:
A situation in which the Seller may or may not be in pre-foreclosure, and
a. owes more money on the loan than the property sale will produce and
b. is unable or unwilling to bring money to closing.
5) Deed in lieu of foreclosure
The legal process by which a defaulted borrower is deprived of his or her interest
in the mortgaged property
7) Doing nothing / walking away
8) Bankruptcy (a possible protection from tax consequences)
Prior to making a decision:
It is critical to talk with qualified finance, tax, and legal professionals so you know IN ADVANCE of making an action decision how the different options may affect your future taxes, your future credit, and your future purchase capabilities.
Also, you will need to talk with your Lender(s)!!
Visit either of the below links to go to the Arizona Short Sale Seller Advisory site for valuable information, including short sale alternatives, precautions and considerations.
The below link goes to an excellent resource blog for distressed homeowner information. The writer, Kathy Mehringer, is a California licensed Real Estate Broker-Associate with Coldwell Banker Residential Brokerage and a National Association of Realtors class instructor, and is currently presenting the NAR realtor-designation class for “Short Sales & Foreclosure Resource” (SFR) certification
A local real estate attorney office who can help with advice: