The McCollough Group www.tmglv.com

SELLERS SIX OPTIONS IN NEGATIVE EQUITY SITUATIONS

1. Pay your mortgage as agreed(possibly throwing away bad money after bad-hoping for a quick turnaround or simply doing nothing). It is estimated it will take 20+ years to reach year 2005 pricing again.

2. Try to get a loan modification(easier said than done but possible-however over 60% of loan mods re-default in first year due to lack of principle reduction)

3. Try to do a Short Sale (Becoming commonplace- and though still lengthy and challenging- Short Sales are the new Norm)

4. Rent your home out to a tenant(you will most likely not be able to cover the monthly mortgage with the rent and have negative cash flow)

5. Walk away from your home(a Option for some -though there is still some negative social stigma attached, however this "stigma" is on the severe decrease)