1. Homes are still selling. Remember, you do have the option of selling your home. But make sure to hire an experienced realtor who can guide you on your home’s pricing as well as its presentation. You might not realize a profit, but “breaking even” is a great alternative to foreclosure, particularly if you cannot ride out the market.
2. If you have little or no equity in the property and cannot sell, consider renting the property. This may present an opportunity for you to keep your home You may even be able to "buy" some time while the market recovers.
3. Sell the property as a short sale. A short sale occurs when the mortgage balance on a property is higher than what a property can sell for. In this situation, a lender may be willing to "short" the mortgage and take a loss in order to get the home sold. The process of a short sale can be complicated and tedious, but it may be a better alternative to foreclosure.
4. Deed in Lieu of foreclosure – In this type of transaction a homeowner signs the deed back to the lender without the lender having to go through the lengthy and expensive process of foreclosure. Many lenders have different criteria that must be met in order to complete a deed in lieu. It is important to work with a real estate attorney through this process. Many times this can be a viable option to foreclosure.