the ramifications and requirements of foreclosure in your jurisdiction. Additionally, a real estate professional has access to sophisticated marketing techniques and networking to aggressively sell your home quickly and at the best price. Your agent can perform a market analysis to help set a realistic and appealing listing price for your home and determine whether the home’s sale value is likely to satisfy your debt to your lender. THE “SHORT SALE” ALTERNATIVE If your mortgage is “underwater” (the home is worth less than the amount you owe on it), then a short sale might be a good option for you. In a short sale, the lender agrees to accept a payoff that is less than the amount you owe on your home loan. With some exceptions, this will satisfy your debt to the lender. However, you will almost certainly pocket nothing from the transaction. As with any pre-foreclosure sale of your home that you initiate, the short sale avoids foreclosure, also lessening the impact foreclosure would have on your credit and ability to recover and purchase property in the future. For this reason, it’s important to apply to your lender early for their approval to proceed with a short sale. The lender will likely want you to prove a purchase offer is already in place for the property. YOUR RIGHT OF REDEMPTION During the pre-foreclosure period, you can attempt to keep your property by settling your debt to the lender. That debt will likely include the full amount of your loan, any delinquent taxes, late fees, and liens — such as a second mortgage — as well as any costs your lender has incurred related to foreclosure, such as filing and legal fees. Catching up and redeeming your
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