I consult with a lot of people lately who are faced with the prospect of losing their homes in foreclosure. Many of them have become ‘upside down’ on their mortgages; the balance of their mortgage is greater than the value of the property. People whose mortgages are upside down have no good options. They have to choose from among the lesser of three or four evils, including facing foreclosure, litigating with the lender, trying for a short sale or loan modification.
There is no doubt that going into foreclosure can bring up strong emotions, and feels like a crisis. However, it is best to maintain a healthy and businesslike perspective on the process. Knowledge of the legal aspects of foreclosure will empower you to take the steps necessary to get through this.