A lot of American families are facing foreclosure in this time and age where a small recession is looming down the horizon. Foreclosure is a homeowners' living nightmare that can leave them and their family in financial devastation for years.

If you are in default or in the verge of default in the payment of your mortgage, you may be facing foreclosure proceedings right now. I feel your pain and I want to help you work this out. I want to tell you about an alternative to foreclosure, it's called short sale. I will show you the easy way to a short sale recourse. 

It's possible to take advantage of a short sale recourse even if you're not yet in default. But for the sake of this article, let's assume that you're in default.

In order to qualify for a short sale the value of your house must be less than the value of your loan. Let say that your house has a present market value of $200,000. In order to qualify for a short sale, your mortgage should cost more than  the present market value, say $400,000. So your mortgage is worth $400,000and your property only costs $200,000.

Once you have established the cost of your property versus the value of your loan, the next step is to show your lender that you are not capable of paying for your outstanding obligations anymore. A letter of hardship. The letter will explain that you have fallen on hard times like sickness, divorce, bankruptcy and other financial obstacles. 

Short sale recourse is not a cure all solution to your financial problems. Selling your house at lower than market value will not make you any money. All proceeds of the sale will go to your lender in order to satisfy your debt.

You can ask, “If short sale is selling my house for less than market value, will any sane lender agree to this method?” The short answer is yes. The lender would want to avoid paying for a long and expensive foreclosure proceeding. They are in the business of making money so they'll naturally opt for a cheaper solution than foreclosure.

And watch this video on short sales and foreclosures. This is a screen shot — just type in your email and I'll get you to the real video. Thank you.