On the other hand, if you go for top dollar, you may not have any takers and you'll end up with a foreclosure. Of course, the best possible scenario is to sell the home for a price that will cover your outstanding mortgage and any other liens against the home. In the case if a short sale, the lender also agrees to forgive some or all of the difference between the sales price and the amount you owe on the loan. If your lender approves a short sale, keep in mind that there are tax ramifications. You will be taxed on this income.
Foreclosure is just one of the many symptoms that indicate a bigger problem - too much debt.
Perhaps you lost your job or have experienced divorce or the loss of a loved one. Major life events such as these can have a devastating affect on your financial health. Of course, you may find yourself in too much debt due to overspending and poor money management skills. Our professional credit counselors can give you advice on your overall financial situation and help you deal with the possibility of foreclosure. We can also negotiate with your lender on your behalf to reach a compromise that may help you keep your home.