Our current economic state driven by the housing market implosion has created numerous challenges for homeowners and borrowers.  What do we do?  Do we hold on?  Do we do a short sale?  Do we go the route of foreclosure?  What really makes sense?  Over the next few posts, I am going to give you different strategies and thought processes to  consider. I am not  an attorney or a CPA.  This is not legal or accounting advice.  It is purely thoughts and concepts to consider.  Each of us has a different situation.  Each of us has different financial challenges that we must face going forward.  I cannot stress this next statement enough.  Before you make any decisions regarding your real estate positions…seek the counsel of a qualified real estate or asset protection attorney, as well as that of a qualified tax professional.  They can give you the necessary advice to help shield you as you  navigate through the minefield of considering short sales or foreclosure.

Facing a foreclosure can be one of the most stressful times in your life.  The idea that you might lose your home can be devastating and surreal.  While you may not know what to do, there can be some positive aspects to foreclosure.  Consider this…

1.] Once you realize that your house is going into foreclosure, you can start saving money as there is no need to continue making those high mortgage payments.

2.] One overlooked benefit of foreclosure is that it can give you leverage when dealing with your lender.  You have wanted a lower payment for a long time.  The lender does not want to lose that loan to foreclosure.  When you become delinquent on your loan, you may be able to re-negotiate or modify your loan.  In Nevada, we have a process through the law called mediation.  It stops the foreclosure process until options can be considered and negotiated, whether it is loan modification, a short sale, or a foreclosure.

3.] Foreclosing on a home closes a chapter of your life and you have the opportunity to start a new one.  Quite simply, you remove a large burden from your life…it gives you a chance to make a fresh start…a new beginning.

4.] Lesson learned.  If you treat the foreclosure as a learning process, you can come away with some valuable lessons learned…Maybe you made some poor decisions.  View them as an education.  If you step back and analyze the situation, learn from it and move on…this is true empowerment.  You take those lessons learned and apply to your life going forward.  You will arise from this challenge a better and stronger person with a brighter future.  You will be able to make better choices, financially, going forward.

This is empowering!