What is becoming more and more evident is that there are a lot of homes underwater -- owing more than what they can be sold for. When this happens it is called a short sale.
Industry leaders are telling me that the lenders are watching increasing numbers of home-owners just simply walking away from their homes, not willing to pay the original sales price for their homes. Sure, that means a forecosure on their part but they think they are walking away from a huge debt. Lenders are not taking these "walk aways" lightly.
More and more we will be seeing lenders pursing foreclosed homeowners for the amount between what they owed and what the foreclosed home sold for. They will not be forgiving these debts. This can affect your credit, garnish your wages or tax refunds. You are much better off trying to work out a short sale for your home. And in many cases, you can live in your home payment free during the short sale process.
If you find yourself unable to keep up with your debt, unable to make your payments, falling farther and father behind, consider a short sale. But beware, not all Realtors know how to make a short sale work. They may tell you they have experience but many don't. You need a proven short sale professional. Let me put the power of my short sale negotiators to work for you.