If you are facing foreclosure you need to price it for a fast sell.If it is in good shape marke tit to regular homebuyers,if it is in need of repair or bad shape marke it to investors.
If you can't reduce the asking price you will need to pursue a short sale before you get foreclosed on as it's easy to see your house is overpriced.Even with mo marketing if the price was decent and just in the mls you would have had more showings then that.If the house needs to much work you would have had at least more showings but just no or low offers.
Short sales are easier to do if your loan is VA or FHA.Executed correctly a short sale shows settled on your credit report which is way better than a foreclosure by miles,no promissory note is signed by the seller,and no defeciency judgment is pursued by the lender.You might get a 1099C for forgiven debt but it will be easy to show you were "insolvent" when the lender agreed to short sale your mortgage.You just need to file IRS Form 982:"Reduction of Tax Attributes Due To Discharge of Indebtedness" to avoid paying federal and state income taxes.
If the lender will not agree to a short sale you can voluntarily do a deed-in-liue of foreclosure where you sign the deed over to the bank.This is often better on your credit report and at the same time you can negotiate cash for keys with the lender to help with your move to more affordable housing.
You can do short sales on conventional loans but they are harder to do as mortgage companies and servicers are forced to try short sales as a workout option because of FHA and VA rules.
If you have leins other than th emortgage they will not do a deed-in-liue beause it will be cheaper for the lender to foreclose and wipe out any junior liens.If the second mortgage is foreclosing andnot the first which is not as common you can see if you could do a deed-in-liue to the second.
Are You Facing Foreclosure?