Lost my job and my wife doesn't make enough to pay the monthly, would it be better to foreclose or short sale?

That question may require the consultation of an attorney or CPA due to the potential tax liability each of those actions may require. Unfortunately, it's fairly common for people in the mortgage and real estate industry to offer up advice without knowing they are breaking the law because they are not licensed to advise in such a manner.Have you had any late payments yet? If not, it may be possible to refinance using the HARP 2 refi program you can read about on my blog http://HomeLoanArtist.com when you are employed again.I know where you are coming from....I chose to short sale my home rather than foreclose for reasons I would be willing to share with you directly if you call me 951-215-6119. I can share with you how I came to the conclusion to short sale and suggest some critical points for you to consider as well.Personally, I think you should speak with 1-2 agents I work with in the Corona area who help people either modify their loan at no cost or short sale if that is the best option for you.Good news is after you short sale, you may be eligible to qualify for a new mortgage loan and buy again with FHA's 'Back to Work" extenuating circumstances program you can read about here ==> http://homeloanartist.com/2013/08/fha-economic-event-extenuating-circumstance-to-buy-again-sooner/Let me know if I can help in any other way.

There's just not enough info to properly advise you on your exact scenario, but in general, Short sale is far more beneficial to one than a foreclosure.. For conventional financing, if you have a foreclosure, you cannot get mortgage financing until 7 years has passed.. however with a short sale, you can get financing in as little as 2 years depending on your down payment.. FHA has some programs that will help you purchase right away so long as you meet specific guidelines, or you might have to wait 12 months.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Hello,I'm sorry to hear about your difficult situation. That's never an easy choice to make. In regards to your question as to whether or not it's better to foreclose or short sale, I can tell you without a doubt that it will benefit you the most to attempt a short sale. Depending on who owns your mortgage now, there may even be cash incentives to pursue a short sale rather than simply allowing the property to go into foreclosure. In addition to that, a short sale is much less harmful to your credit which means you'll be able to get back on track quicker once you find another job.Based on the information you're providing, it sounds like you may have a difficult time qualifying for a refinance. Without any specific figures, I cannot tell you for certain either way, but typically if you're unable to pay your bills with the income that is coming in, it will be very hard to get approved for a new loan. I wish you the best of luck and if you have additional questions, feel free to contact me.Thanks,Sean Miller, MBA

What type of loan do you currently have now? If you have an FHA or VA loan you could potentially do a streamline refinance to lower your mortgage. Look into foreclosure prevention programs and loan modifications as well. If you have no other options besides foreclosure or short sale, a short sale is the better way to go.