The squeeze placed upon homeowners is not going to let up anytime soon. The bailout will take months to even start helping our economy if it helps at all. People who are facing foreclosure are even considering the options of bankruptcy versus foreclosure. Before making a consideration for bankruptcy, lets take a look at how both will affect you financially in the future in regards to the fix they can provide today.

Neither of the options will be an easy one at all. Foreclosures will stay on your credit history for at least seven years while a bankruptcy will remain for ten years. Many mortgage lenders are going to look very seriously at whether you foreclosed versus a bankruptcy that did not include your house. Before you feel that foreclosure is a forgone conclusion consider other options as well.

First, if you are only one or two payments at the most behind, call your lender. Keeping a line of communication open between you and the lender is vital. Keep them informed of your situation and sometimes they will work with you over a period of time. Attempting to avoid calls or contact will only give the lender the option to start legal proceedings against you.

If you find yourself falling behind, you must be realistic and take a hard look at your finances. Could borrowing money from friends and family help you out of this current situation? If it will, can you keep up your obligation after that? If not, you need to seriously consider getting out of the obligation.

Even though you are considering moving, you do not want a foreclosure on your credit report. You must think about your future and the possibilities of obtaining a future loan for another house. You can sell your home even in this market to a professional real estate investor.

Putting your home on the market in this economy is difficult at best. Even new construction sales are down which makes the market even more unattractive. Your house could stay on the market for six to twelve months, and you would still have to make mortgage payments during this time period.

Sell your home to a real estate investor that specializes in your immediate circumstance. In some case, you could find yourself closing in as little as seven days. Contacting a real estate investor can stop the foreclosure process and may even put a little extra needed cash in your pocket.

 If you are facing foreclosure, don’t think that bankruptcy is the answer. The solution is to get out of your obligation with your credit rating still intact. Call and talk with your local real estate investor today.