hypothetically, if one was facing foreclosure

[Connonym]

and refinancing is not an option (because the payments would be too much, you know hypothetically) who can one hypothetically go to for help getting it over with as painlessly and cheaply as possible? Would it be better to pay a real estate commission on a short sale rather than offer the lender a deed in lieu of foreclosure? Would you have to pay any shortage if you do the deed in lieu? which would have a bigger impact on one's future credit rating.

I'm sorta freaking out and I don't know what the hell I'm doing.

[zonkers]

1. sympathetic kick.

The business minds who can answer this query are probably all at work right now.

[Shakespeare]

2. PM flvegan--I think he used to do that for a living....

....and he's always got good info. Good luck to you.

[Midlodemocrat]

3. I second this. flvegan is good people.

[Raven]

4. First, talk to your lender, there may be a chance you can

restructure the loan. I think a deed in lieu would involve an agreement with the lender that would not require you to pay a shortage whereas if you sell for less than the mortgage amount you would have to come up with the difference. BUT, the most important thing you can do for yourself is get some advice from a real estate lawyer before you do anything! Good luck!

[flvegan]

5. Is foreclosure going to happen regardless?

Call your lender and ask for loss mitigation. They'll oftentimes reduce your payments for a short amount of time and/or extend the life of the loan.

With a short sale, you may still end up owing the lender, and you have to actually sell the property. A deed in lieu hurts your credit about the same as a foreclosure, but the lender will usually let you walk away not owing them anything.

More lenders are realizing that foreclosure is bad business. They lose a pile of money on 90% of them.

As always, feel free to PM me if you have any specific questions. I spent 10 years in a real estate law firm, and I know foreclosure/los mit pretty well.

[kay1864]

6. Saw this article a couple weeks ago:

How to Avoid Foreclosure
BusinessWeek Online
By Maya Roney

Has the American dream of homeownership turned into a personal nightmare? To hold onto your house, consider these tips and traps

http://biz.yahoo.com/weekend/foreclosure_1.html

[Connonym]

7. Thanks to you all for responding

flvegan was able to help clarify a few things. I feel a little more confident in what I need to do. Thank you!