You are not the only person that is having a problem making ends meet. The economy is in a rut and it' affecting everyone. Companies are experiencing losses, people are losing their jobs and no one can seem to get things back on track. When the economy is in a rut, the entire country feels it. Unfortunately, this also means a lot of people are losing their homes to foreclosure. Even though it seems like the only option at the time, it' something that will blemish your financial records for years to come, and what happens when you are back on your feet looking to buy a new home?

Lenders are less likely to loan money to someone who has had a previous foreclosure, and with good reason. They want someone who can consistently pay their bills on time, and while everyone has financial problems at times, it' better to try to work something out then to just let your home go.

Weighing your options is a must. You need to look at all of your options. What are the benefits of a deed in lieu of foreclosure vs short sale? A short sale is when the mortgage company agrees to the sale of the home for less than what is actually owed on the mortgage. This benefits you because you avoid having a foreclosure on your record, you don' have to go through the long waiting process and you are relieved of the enormous debt you owed to your mortgage company.

Some companies will agree to this even because they are taking a slight loss, because it' more trouble recouping all of their money if they have to go through the entire foreclosure process.

A deed in lieu of foreclosure is a little different. Basically, the mortgage company is taking ownership of the property, and you are relived of your debt. However, signing the deed over to them willing without going through the entire foreclosure process, avoids a foreclosure being on your record. You are relieved of your debt, and they retain complete ownership of the property. The options are out there, discuss them with your mortgage company and figure out what works best for you