Looking for foreclosure alternatives

[orion]

My home is going to be foreclosed if I don’t do something about it. I don’t know the best way to consolidate my debt to avoid losing my home. I’ve got about $15,000 in credit card debt and my mortgage rate recently jumped – so I cannot afford to pay anymore. What are my options?

I’ve heard about options for selling my home, but I’m not sure that’s the right thing. I’ve thought a lot about loan modification but don’t know where to get started. Can anyone share their experience?

Favorite Quote:
“Don't waste yourself in rejection, nor bark against the bad, but chant the beauty of the good.” -Ralph Waldo Emerson

[HHM]

The starting point for modification is to contact your lender. Or, if you can find a reputable mortgage broker than has been helping people with modifications, try to get a referral, the people that are popping up and placing ads to help are mostly scams.

As for selling, you have 3 options
1. Sell it, and get a enough money to pay off all mortgages plus whatever costs of sale.
2. Sell it, for less than you owe on the mortgages, and come out of pocket to make up the difference.
3. Short Sale, get lender approval to sell the home for less than you owe on the mortgages. (see this thread that discusses http://www.bkforum.com/showthread.php?t=17098)