Sell a Home

Know Your Options - Avoid Foreclosure

If you are one of the many homeowners facing tough choices in today’s economy, we understand. We know that looking for assistance with your mortgage and deciding where to go for help can be confusing and frustrating. And we’re here to help.

Whether your financial hardship or current situation is temporary or more permanent, options are available. Even if you have decided you want relief from the responsibility and the burden of your mortgage payments, now’s the time to take action before it’s too late.

To help, Fannie Mae has created KnowYourOptions.com — so homeowners can understand their options. Visit this website to learn more about how you can avoid foreclosure and so you can have a more informed discussion with your mortgage company or housing counselor about your options.

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Use a Short Sale to Escape Foreclosure

If you owe more than your house is worth and can't afford your payments, you might be able to sell it for less than you owe -- without having to pay the lender the difference.

If you can no longer make your mortgage payments and your home is now worth less than you owe on it, foreclosure may not be your only option.

A short sale, in real-estate terms, is the sale of a house for less than what the owner still owes on the mortgage. If the lender agrees to a short sale, the rest of the homeowner's debt typically is forgiven. Lenders sometimes agree to the procedure in order to take a small loss and avoid the lengthy and costly foreclosure process.

While there are some significant negative consequences to a short sale, an ever-increasing number of properties are being advertised with that label.

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Shortsale FAQ

I feel so guilty and ashamed for putting myself in this position.  How did I allow this to happen to me?

If you learn only one thing from visiting us we hope it’s that you allow yourself to be free of guilt and shame over your circumstances. We are in the midst of the greatest economic downturn in our history as a nation. You are not personally responsible for our economy nor do we think you are personally responsible for dropping property values. 

The only thing you are really guilty of is bad timing. You probably purchased or refinanced your property in the last five or six years.

If ever there was truth to the notion that there is safety in numbers, you can feel safe in the knowledge that millions of homeowners share your pain and your circumstances. We do not wish to make light of the problem but let’s recognize it for what it truly is. This is “where” you are in life and not “who” you are in life.


Read more: Shortsale FAQ