Expert: Brian Beardsley - 6/15/2009

Question
Hello. I moved out of my home after i could no longer afford the payments. The current renter was paying the mortgage payments directly to the mortgage company. She has not made a payment in three months and the mortgage company is threatening foreclosure if i do not come up with $2187.30 by Wednesday. (Two days.) Prior to her living there, (Eight months,) i had made every payment on time and my parents also paid a large portion of the loan off. I currently owe $146,000 of the original loan of $209,000. I am listing the home on Wednesday. My question is can i sell this home while it is in foreclosure? Do you have an suggestions?

Answer
Thanks for your question.  I would IMMEDIATELY contact the lender and see if you would qualify for a loan modification - DO NOT, I repeat, DO NOT contact a third party, or respond to an email, or a television ad promising you debt relief.

Your lender would be your best source of relief - BE UPFRONT and TRUTHFUL with the lender regarding your situation - They may be able to modify (reduce) your payment, or bring you current to buy you some time until you sell the property.  You CAN sell the property up until the day the lender formally forecloses on it -(AVOID THIS AT ALL COSTS)

I hope this information is helpful, feel free to post any follow up questions - Thanks for using AllExperts.com!