Not all mortgage payment failure situations can be solved, despite having tried to reach an agreement with a loan officer through a prevention program. If you are unable or no longer desire to retain your property, consider these alternatives before facing a possible mortgage trial.

• Sale: You can avoid mortgage trials if you have a pending sales contract or your property is in the Real Estate market. This option can be a positive solution if the total amount of the sale can cover the loan debt and sales fees.
• Short Sale: Your loan officer can allow selling your property on your own before the mortgage trial process begins, and will “pardon” any discrepancy between the sale amount and mortgage balance. However, you may be required to pay taxes on the total “pardoned” debt.
• Deed in Lieu: You can voluntarily sign your property over to the loan officer in return for the cancellation of the mortgage balance. Despite the fact that you will lose the property, this option can cause less damage to your credit history than a mortgage trial. This option cannot take effect if other loans or obligations are assured by the property.

Ask For Help
A homeowner counseling agency can help you during this situation by analyzing your case, answering questions, providing options, prioritizing your debts, and assisting in the communication process with your loan officer. Contact your local Department of Housing and Urban Development office at 1-800-569-4287 or visit: www.hud.gov, to find a homeowner counseling agency approved by this government entity. You can also contact NeighborWorks Center for Foreclosure Solutions at 1-888-995-HOPE or www.nw.org

• The mortgage trial prevention specialist: The so-called “specialist” is a false consultant who asks for large sums of money in return for their services. These “services,” which consist in making phone calls and filling out papers, can be easily performed by the homeowner. None of these “services” can save your property.
• The one who promises to let you buy your home back: Homeowners are deceived into signing over their property to someone who allows them to stay in it by paying some rent, so they can buy it back later. Usually the terms to buy it back are so demanding that it is almost impossible to do so. Thus, the homeowner is dislodged and the person who was supposed to help you keeps most, if not all, of your home’s equity.