Home  If you have fallen behind on your mortgage you will receive information – and lots  of not so subtle suggestions – from many people who want to take advantage of your temporary misfortune. They will tell you that time is your enemy and that you must act immediately to save your credit. That will normally be followed by a proposal to solve your problem by selling or deeding your property to them.  Don't Do It! Don’t do anything until you understand your options. HOPE NOW Alliance--  HOPE NOW is a cooperative effort between counselors, investors, and lenders to maximize outreach efforts to homeowners in distress. Short Sale If you owe more than your home is worth, you can look at negotiating a discounted payoff with your mortgage company. I will negotiate with your mortgage company on your behalf to get approved for a Short Sale. I have experience with these transactions and you'll be relieved to know that the lender will nearly always pay all sales costs including title and escrow fees, commissions and most repairs.  See  Short Sale FAQs Refinance and Pay Off Existing Loans  I have loan sources for this type of loan, but the loans are very expensive and they normally require that the borrower have significant equity in the property. Nevertheless, refinancing is an option for some. Negotiate a Forbearance Agreement with your mortgage company. For those borrowers who experienced a very temporary event that caused them to fall behind on their mortgage, a Forbearance Agreement with the lender is a good option. Lenders may let you make a lower or no payment for a few months, making higher payments when you resume paying. In most cases, the mortgage company is going to look for two things when considering a forbearance agreement.    First, why the loan became delinquent in the first place. It helps greatly if the problem was something beyond the control of the borrower – serious illness or injury, temporary disability or a one-time disruption in income.   Second, that the borrower’s financial difficulties have been corrected. The mortgage company wants to know that the borrower is now on a solid footing and can be counted upon to make regular loan payments as agreed. The new payment will probably include some amount to go to the delinquent amount.   Do Nothing Of course, you could just do nothing. Many go this route because the situation seems overwhelming. It is a heavy burden, but the consequences of a foreclosure are serious. Let’s at least consider potential solutions that help you avoid foreclosure.  Four Things You Should Never Do If You Fall Behind on Your Mortgage Do Not ever deed your property to a third party without confirmation your loan has been paid off. Note: if you believe this option is best for you, please consult with an attorney – not the buyer’s attorney – before completing the transaction. If you deed your property to a third party, that party then controls the property. The new owner can rent the property (and keep the rent), attempt to sell the property to make a profit, move into the property or use the property in other ways. What the new owner might not do is make mortgage payments, and that could become a big problem for you. Just because you no longer own the property does not mean you are no longer responsible for the mortgage loan obligations. The lender made the loan to you. And until it is paid off you will be primarily responsible for the mortgage obligation. If you give up control of the property and the new owner does not pay on the loan, the damage to your credit could be catastrophic. Do Not sell your home at a huge discount Unless the actual foreclosure sale is less than 45 days away, you have time to explore options. Take a day or two and make a few phone calls. As a general rule, if someone is pushing you hard to get you to sell your property to them, it’s probably because the deal they are proposing is very favorable – to them. If you have equity in your home, it belongs to you. Let’s see if we can get it to you. For a Free, no obligation assessment, just click here to submit a request.  Note: I will not call you on the phone unless you specifically request it. Do Not authorize a prospective buyer to deal directly with your lender. The buyer has one goal and one goal only, and that is to negotiate a low, probably very low, price with your lender. The buyer will ask your lender to accept a discounted payoff. The negotiations could go on over an extended period of time, and if the transaction does not work out the buyer may elect not to buy your property. It could leave you with very little time to resolve the situation and avoid foreclosure. Further, you have no control over the information that goes to your lender or the accuracy thereof. It is entirely possible that the buyer could handle the negotiation and presentation of information in a way that makes it very difficult for you to resolve your loan situation later. If, however, you believe that your best option is to allow the buyer to work directly with your lender, make certain you consult with a real estate professional and/or an attorney before signing a contract. If you are going to do a Short Sale get representation from a real professional. It costs you nothing – the lender pays the fees. Someone should be looking out for you. It's a win-win situation. It costs you nothing and the lender does not want to take your property through foreclosure. That’s why they will negotiate to get the deal done. Contact me!  I can help Do Not do nothing A surprising number of people just accept what they see as the inevitable, and let foreclosure run its course. Don’t let it happen – the damage to your credit will follow you for years. Take a little time to explore potential options. You do not want a foreclosure on your credit record. It will hamper your ability to get a consumer loan or a car loan for at least a few years, and it will be very difficult to get another mortgage for a very long time.