Facing foreclosure is probably one of the scariest things a homeowner can face. They start asking themselves many questions that they cannot answer and do not know where to turn to for help. Always consult a real estate attorney first with any questions in regards to your particular situation. In most cases however FORECLOSURE is NOT the ONLY solution. Listed below are 6 options you might choose when you fall behind on your mortgage payments.

1.) Short Sale - A short sale is when your lender(s) accept a sales price less than the mortgage amount on your home. A short sale does have a negative effect on your credit however most of our clients were able to purchase new homes even after a short sale with their current home.

2.) Foreclosure - Many people do not want to take the effort to try to save their home and often let it just go into foreclosure. Foreclosures stay on your credit report for 7 years and affect your eligibilty to purchase a new home in the future. We've had several cases where our clients have short saled their current residence and were able to go out and buy a new home soon after.

3.) Deed in Lieu - This is when you hand the keys over to your mortgage company because you know your property would go into foreclosure otherwise. Although this seems like a very easy alternative, there are still financial ramifications to do so, and not every homeowner qualifies.

4.) Refinance - If you have equity in your home you might be eligible to refinance your mortgage. This could be a great alternative even to a short sale. The only drawback is most homes in our area have lost a significant amount of value and are ineligible to refinance. If you do have equity this might be the way to go if you want to keep your home.

5.) Cash at Closing - In order to satisfy your mortgage if you cannot sell your home for more than you owe you can bring cash to closing to cover the difference. This is the best option if you want to protect your credit however it can be very costly. Not only would you be responsible to pay off your mortgage but any closing costs as well.

6.) Bankruptcy - Depending on your financial situation a bancruptcy might not always been the best choice. Most people prefer short sales because the only creditor they owe is their mortgage company. Why have a banruptcy on your credit just because you're behind on your mortgage when you can easily try to settle your debt with a short sale?