Losing your home over some unpaid mortgage payment is a scary thought in the mind of many homeowners. The rate at which many homeowners are losing their homes is very rampant and unhealthy. Due to the effect of the economic crisis on real estate, some homeowners feel there is no reason why they should keep paying mortgage on a far less home than its original value. However, having your home foreclosed comes with so many consequences that you’ve better prevent. There are various options you can use to stop foreclosure. If you do not wish to spend any extra money on the house and want to let go of the house, a short sale is the best option.

A short sale happens when you sell your home for a value lesser than the total amount you owe your lender. For example, if you owe about $150,000 on your mortgage plus other charges and sell your home for $120,000, that is a short sale. Most lenders will agree to this because foreclosure sale does not usually cover the total amount owed, which means a short sale will save every from unnecessary stress. However, if you are not careful, your lender can sue you later for a deficiency judgment. The only way to prevent this is to have your lawyer prepare a legal document that your lender will sign agreeing not to sue you after the sale is concluded.

Although you might lose your home, a short sale allows you to sell your home on your terms and consequently avoid eviction notice. You will also be able to get rid of the loan without the fear of facing deficiency judgment later. Make sure to send in your request as soon as possible because it usually takes time before the bank accepts a short sale request. Contact your lawyer today to prepare the necessary documents and send in your request as soon as possible.