Do you owe more than your house is worth? If so, you cannot sell your house unless one of two things happens. One, is you put in cash. You actually pay money in when your house is sold. For instance, if you owe $200,000 but your house is now only worth $160,000. In that case, you will not get $160,000 when you sell. You have closing costs, commissions for the real estate agents and so forth. You may get $150,000 clear. So you will be $50,000 short.

If you have $50,000 that is in cash or stocks or some other asset that can be easily converted to cash, then watch out. Your lender will want you to pay that money to them if you want to sell your house.

If your money is locked up in a protected place like certain retirement accounts, it doesn't have to be counted as assets that your lender will insist you tap. They may try but you don't have to count that type of money.

But if you don't have money just sitting around, and you owe more than your house is worth, and you cannot make your mortgage payments, what then?

Then, you do a short sale if your lender will agree. I have put together a home study course, Mortgage Relief Formula, which is coming out soon. And meanwhile I have prepared an informative 25 page report you can download instantly, Keep Your Home, along with emails that spell out how to protect your credit, deal with creditors to lower your payments without bankruptcy and much more. Join my list now and your privacy is assured.

Okay, so to continue…in a short sale, you sell your house for what it is "worth", meaning below market value. That allows you to sell even when others can't. Your neighborhood may be littered with for-sale signs, but you can sell your house if you know how, and if you can sell at the right price. Now you present a completed short sale package to your lender that spells out your hardship, the reason you can't make the payments, what your house is worth, how you exposed the house to the marketplace, how the buyer paid what is reasonable to expect as a fair price, and more.

What you can do now is get the lender to agree to a short sale and you negotiate two major points. One is how they report on your credit. The other is that they will not pursue you in court after the short sale for their financial loss.

They may not agree to this, but if you negotiate with them from a strong position, you can often get them to agree. I strongly urge you to join my list and also see foreclosure deed in lieu credit reports