There is always a way out of a foreclosure jam. Consider the following situations:

1. Your property is worth less then the mortgage, a declining real estate market.

2. Something happened and your in default and cannot pay the monthly mortgage.

What to do?  A workout.

Acquire a loan commitment for whatever amount you can, irrespective of what the mortgage debt may be, and provide the bank with an option, a workout conclusion, paying them less then the mortgage amount but more then they would get in a foreclosure auction.

They will take it.

Alternatively, if staying in this mortgage commitment or simply keeping this house is not in your best interests for whatever reason, sell it,  acquiring an offer for whatever offer you can attract for whatever amount it may be and provide the bank with a short sale opportunity, a sale that yields less then the amount owed. They will take it if the facts, the situation and the presentation is effective.

The important message is that a short offer is always worth the effort and never assume the bank will only accept the full payoff, this is absolutely not true at all.

Of course you must have an effective workout presentation including a diminished net worth and a reduced ability to pay or support the mortgage. You must be in arrears for at least 90 days and subject to foreclosure. Then you have set the stage for a workout conclusion.

You are entitled to prepare your personal financial statement in your own best interest, this does not mean lie or misrepresent your financial position but it does mean you have an opportunity to present yourself in the light most supportive of your own best interests. This applies to both demonstrating a higher net worth or a lower net worth. Both are relatively true, both are a different view of the same situation, both are reasonable, accurate and true, but both are different and tell a different story. Remember the glass can be half full or half empty, yet its the same glass of water.

The important point is a workout is available if you know how to position yourself and present the pertinent financial information. As well you must prepare your finances in the light most beneficial to your reaching your goals and then negotiating a workout is a very possible strategy.

Workout negotiating is a skill as well as an art form and I strongly recommend you search out and hire a workout specialist to assist you in accomplishing a short payoff and a release from shortfall liability, the remaining debt owed after the short sale is concluded. What’s the point of arranging a short sale if the remaining liability is still owed.

This is the approach required to resolve a foreclosure situation…Call me for help. 413-549-2966.