Is Foreclosure my best option?

[overcommited]

I am a single 28 year old male. I purchased my first home, which I still live in, in July 2009 for $110,000 and remained current on payments for 3 years. 4 months ago I quit my dead end construction job that had allowed me to purchase the home to pursue my own business online. I have not been able to produce enough income yet to keep up with the mortgage payments and am currently 3 months behind with an impending foreclosure notice if the account is not brought to "current" status by Dec. 12th. According to the Lake County Tax Collector, my home is now worth $79,000. I have no real assets other than my 98 Nissan Altima, furniture, clothing, and electronics. My credit is already in pretty terrible shape after attempting to find some sort of satisfaction in material possessions to compensate for the disatisfaction I had with my career and choices. I'm not sure of the costs, risks, and benefits of allowing the foreclosure process to happen versus trying to reach an agreement w/ the bank or trying to do a short sale (which is how I purchased the house in the first place - btw, the house was BUILT in 2007 for around $160,000). What is my best option if I essentially don't have anything to lose?

 

[army judge]

I am a single 28 year old male. I purchased my first home, which I still live in, in July 2009 for $110,000 and remained current on payments for 3 years. 4 months ago I quit my dead end construction job that had allowed me to purchase the home to pursue my own business online. I have not been able to produce enough income yet to keep up with the mortgage payments and am currently 3 months behind with an impending foreclosure notice if the account is not brought to "current" status by Dec. 12th. According to the Lake County Tax Collector, my home is now worth $79,000. I have no real assets other than my 98 Nissan Altima, furniture, clothing, and electronics. My credit is already in pretty terrible shape after attempting to find some sort of satisfaction in material possessions to compensate for the disatisfaction I had with my career and choices. I'm not sure of the costs, risks, and benefits of allowing the foreclosure process to happen versus trying to reach an agreement w/ the bank or trying to do a short sale (which is how I purchased the house in the first place - btw, the house was BUILT in 2007 for around $160,000). What is my best option if I essectially don't have anything to lose?

Before you do anything (I don't think a short sale will do much for you in this case), you might want to consider bankruptcy.

Bankruptcy generally works out best for people in your position.

But, discuss your entire situation with a local BK attorney.

One big benefit, especially with the holidays coming, is that you'll get to stay in the home a few more months.

Your attorney will describe how this could work for you.

So, find one or two in your county, and have that chat ASAP.

Then pick one you think you can trust.