You could speak to the lender or better yet, ask an attorney to help you try to negotiate a deed in lieu of foreclosure. The sooner you speak to a lawyer, the sooner you might be able to get some relief.
If you stop making payments, the bank will begin foreclosure. You can try a short sale where you sell it to someone for less than the amount you owe, but the bank has to agree. This process can only be started when you have not made your payments for a few months.
Now is the time to develop a strategy - contact an attorney experienced in helping homeowners in this situation. There are at least 6 options.
1. Deed-in-lieu of foreclosure
2. Short sale
3. consent foreclosure
4. Reduced redemption after Judgment
5. In Rem Judgment
Which one is right for you? That's what an experienced attorney can help you decide.
I hope this helps.
Steven A. Leahy
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
I agree. You can try to do a loan modification, but the odds of getting your loan amount reduced are very low. Also, if you do a modification, you will have to disclose all your financial, which might hurt you later on. If the property goes into foreclosure, you can offer a “consent foreclosure” to the bank. If accepted, you will give up the title, and the bank will give up the right to obtain a deficiency judgment against you. If that does not work, preparing for bankruptcy might be a good idea. Good Luck.