The short sale is an important and common form of property sale when you owe more than the value of your property and can no longer afford the mortgage. Learn more about them here.

We’ve seen the housing market go from bad to worse. Foreclosures are up, values are down. If your mortgage is considered “upside down” or “under water” – you can’t expect to sell the property right now for more than you owe - so you need to come up with another solution. There are five basic methods of solving the problem: (1) Payment Plan; (2) Loan Modification; (3) Sell the property, including at short sale; (4) Deed in Lieu of Foreclosure; (5)Foreclosure. Let's go through each one.

With property values fluctuating and mortgage rates low, what should you do?