Selling your house by means of a short sale is very complicated and they are not all successful. What you don’t know is that you are being pre-qualified and not even know it. When we talk too much and say the wrong things, is the easiest and fastest way to get a turn down. So, be careful and talk to a short sale foreclosure specialist first!

A loan modification generally occurs where the bank and the seller mutually agree to workout the problem by creating a new and better loan term. The hope is that the new loan will enable the borrower to meet their obligations.

When applying for a loan modification, make a game plan on how exactly you are going to approach them. These people are trained in minimizing loss for their company and they get paid to by getting the most amount of money out of you as possible or declare that your case is unworkable and foreclose on you. That is how they mitigate loss. If you understand this, then you'll know that you have to approach them and all conversations very carefully. Everything can and will be used against you.

Some ways to stop foreclosure is to never discuss your household finances over the phone with the collection department. What you don’t know is that you are being qualified and not know it.

You can request a homeowners assistance package so that you can submit the require information. So then you should never, ever tell them you are broke. You need to prove that you have enough money to handle a reduced bill and any cost you need to pay. Even though you may qualify for a special forbearance or modification, you will still need legal fees and foreclosure cost. These fees cannot be put back into the loan. Your lender prepaid them to their attorney to start the foreclosure process.

Why would anyone want to choose foreclosure if you don't want to undergo short sale? There are two types of foreclosures, judicial and non-judicial foreclosure. When I say non-judicial foreclosure, your lender, through a lawyer or agent, will act as a trustee in order to sell your house in an auction.

This process does not involve any court intervention whatsoever. With non-judicial foreclosure your lender or your lenders agent will act as a trustee and sell your house in a privately run auction. This process will not have the court involved in any way. The problem with non-judicial foreclosure is the fact that you will not be exempt from any liability from financial responsibilities more important than your mortgage.

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