If you no longer want to stay in your home and you don't want to have a foreclosure on your credit you may want to consider having a lawyer get you approved for a short sale. When you short sale your house you are asking the bank to allow you to sell your home for less than what you owe on the home. The lender may or may not be willing to accept a short sale from you. That is why it is very important for you to have representation when going through this process. Also your lender may try to stick you with the balance of what was owed verses what the property was sold for. In the short sale contract you should make sure that the bank is not trying to make you responsible for the deficiency balance. Yet another reason why you should hire an attorney to guide you through the short sale process.
Many people are turned down for loan modifications and then don't know what to do. They can't afford to get current on their mortgage payments let alone afford the mortgage payment at all. When this happens and you realize that you can't afford your home any longer you should take a graceful exit, and do as little damage to your credit as possible, a short sale.
