One simple solution for the homeowner that finds him or herself in this dilemma is to simply not move. Stay in their present home and enjoy the tax benefits of home ownership, the features and benefits of their present home, wait for market conditions to change, principle reduction to accumulate, and home values to appreciate.

But what about the homeowner that must move due to job loss, reduced income, death, divorce, job transfer, pending or eminent foreclosure, or even for medical reasons? Certain options are available. These options often require the cooperation of the homeowner’s lender. These options may include a forbearance plan, loan modification or even a deed in lieu of foreclosure. Another option to consider is a short sale. If the homeowner can demonstrate a serious need the lender may consider offering a compromise. This is commonly called a short sale. Short sale solutions range from nothing, to transferring a partial balance to an unsecured loan, and or to forgiving part of the mortgage balance.