·         What is the Short Sale?

A short sale is an agreement in which your mortgage lender agrees to accept a pay-off on the loan for less than the balance. Many lenders agree to a short sale because they receive more of the loan balance in comparison to the amount they would gain from selling the property is located and helps the homeowner maintain a better level of credit compared to a foreclosure. In most instances, homeowners considering a short sale must meet specific criteria to qualify: you must be behind in your mortgage payments, provide evidence of economic hardship, and have title or no equity in the property.

A short sale is not a typical real estate transaction. It involves the home seller and their real estate transaction agent, the buyer and their lender, and their real estate agent. All of these parties in addition to the seller's loan servicer, a housing counselor, any junior lien holders, mortgage investors, and insurers may be involved too.

·         What should I do once I'm behind on my mortgage payments?

Don't wait, get help early! By actively working to resolve the issue as soon as possible, you greatly increase your chances of avoiding the loss of your home through foreclosure. If you've even seen the possibility of missing a payment, contact your lender and explain you financial situation. This act of initial contact, before letters of delinquency arrive, will help your lender understand that you are facing issues the impede your payments, providing your lender an incentive to find a proper "work out" resolution, or to begin modification to your loan.

·         What is a "work-out" resolution?

Commonly, the term "work-out" resolution is an agreement where you continue making payments on your past due amount over a period of time, or a modification to your loan to lower your interest rate, or an extension loan period that will help lower your payments.

·         I am in the foreclosure process, should I stay in my home or leave?

You should contact your attorney to determine the best course of action. Abandoning your property may have severe negative consequences on your qualification of assistance.

·         Do you have any other advise?

Always be wary of potential scams. Any person or company offering a solution that sounds overly optimistic may be trying to take advantage of you during your time of financial troubles. Some warning signals of a scammer include anyone who is charges a fee before any service are completed.

·         Why would my lender rather help me stay in my home than foreclosure?

There are several reasons that your lender(s) may be interested in other options than foreclosure. Most of the times, the lender(s) will take substantial financial losses, on average $50,000, from a home foreclosure. Mortgage companies are not interested in owning and selling homes.

·         How common is foreclosure?