Accepted Answer

I would not suggest allowing foreclosure to occur as it will affect your ability to secure future financing. I would also not suggest dipping into any savings or retirement plans. You need to contact the lender and offer to do an exchange of the property for forgiveness of the mortgage, which means you simply give them the property and they write off the mortgage balance and you walk away with nothing. If they refuse to do this, then you could seek to do a short sale and seek to share costs with the buyer or get the buyer to pay closing costs as part of the deal. A creative real estate agent should be able to work some deal out that you can afford. Foreclosure should be your last option.

You could also try to rent the premises while you are trying to figure things out and this would at least get you some, if not all, of your mortgage payments.

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Expert:	PaulMJD
Pos. Feedback:	99.5 %
Accepts:
Answered:	9/30/2008

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