Homeowners all over country are faced with the pressure of keeping their home. Homes in Arizona, in particular, has been hit especially hard. This is not the homeowner’s fault and, if you’re affected, please understand that you are not alone. Some questions that remain, however, are: Do you continue to make mortgage payments on a home that is worth less than what you owe the lender? And what if your income has been significantly reduced and now you are not able to make the payments?

These are legitimate questions and concerns, so where do you go for answers? The first step is to get educated. You need to know your legal rights and options should you decide to walk away from your home, conduct a short sale, do a Deed in Lieu or file for either bankruptcy or foreclosure. Do not make a decision based on fear and panic or what a neighbor or relative did.

There may be consequences to you as a homeowner for disposing of your home in a distressed property transaction as mentioned above. You owe it to yourself and your family to search out this information even if your transaction happened a couple years ago. It is true that Arizona is a non-judicial state and some homeowners are protected from deficiency judgments by the Mortgage Forgiveness Debt Relief Act of 2007. But, if you are not protected, the lender can come back and sue for deficiency judgment up to six years after the transaction was completed. There may also be tax implications involved with these sales and, additionally, you need to know if your property is located within a HOA, or homeowner’s association.

A loan modification may also be an alternative, and there are many government programs available including President Obama’s Home Affordable Modification Plan (HAMP) and the Home Affordable Refinance Program (HARP). To find out which program fits your needs best, please consult with a mortgage professional. More relief has come the homeowner’s way with the announcement of Home Affordable Foreclosure Alternatives (HAFA) and even more recently, with Fannie Mae and Freddie Mac’s upcoming versions of HAFA. This is really good news for all.

There is still a misconception, however, that anyone can do a short sale transaction. Short sales are becoming more prevalent but they are not for everyone, just like bankruptcy isn’t for everyone; you need to qualify. If you are seeking a short sale, be proactive in interviewing a real estate professional to make sure he or she is qualified to handle your transaction.

Finally, if you have been asking yourself, “Should I stay or should I go?” and are struggling to make your mortgage payments, now is the time that you should be talking to legal counsel for real estate alternatives and tax implications. Don’t let time run out. Reach out today. Help is here for you and consultations are usually free.