i have a close friend who is going thru some trying times in New York state. she is a single mom with three children at home. she works a full time job but is falling behind mainly due to one child’s medical issues among other things. she recently filed bankruptcy but she has kept her home which she has been in for i’m guessing four years and just barely making her payments and taxes; which are separate. she has asked me about doing a short sale to avoid foreclosure. she is not currently behind and did pay her taxes late, but she fears the writing on the wall. i don’t even know if she would qualify for this route. if she does how much worse can this affect her credit? is she better off trying for a loan restructure or forebearance? can anyone share some advice or at least point her in the right direction? thanks to all in advance.
Her lender most likely will not accept a SS if she is not at least a couple months behind in payments. If she really cannot afford her payments, she should try to sell before it gets worse. It might be possible to work out with lender a lessor payment if there is some equity they can sometimes reduce the payment and add it to the back of the loan. Just call them and find out what they can do.J