Finding the Silver Lining in Foreclosures

The next step is to present your offer. If the seller agrees, you would still need to get the lender to agree to the terms of the sale, if the price means the lender will have to accept a short sale. Make sure you get the lender involved early, or you might waste everyone's time.

Here's another concern -- if there is more than one lender, you will need to negotiate with both or all of them simultaneously. In cases where the primary lender is going to have to take a haircut, there will be no money left for the second lender. That may mean that the second lender won't agree to the sale.

When going into a short sale, know that the deal will probably be much more complicated that you might expect. I would hire a real estate lawyer to help with the negotiations, and perhaps rely less on the agent.

I am buying a new home that is not yet under construction. My contractor has asked for a "commitment letter" from my bank. My contractor then said that we would write up a contract.

When do I need to hire a real estate lawyer? And because I am a first-time home buyer, whom can I go to with questions?

You should hire a real estate lawyer as soon as possible, especially because it sounds as though you are not working with a real estate agent.

If you don't work with a real estate agent, you need to hire someone to work on your behalf, walk you through the deal, answer your questions and make sure your rights are protected. A real estate lawyer fits that bill. You can find a good one through your local or state bar association.

Three years ago, I took over my mortgage after a divorce. My ex-husband had accumulated a load of other debt, and my credit history was good. It was the best decision at the time.

I refinanced our loan into a 3/1 adjustable-rate mortgage with an initial 5.625 percent interest rate because I had planned on selling this year. But with the housing market in dismal shape and no homes selling in my area, I have to do something because my payments are a big drain on my monthly income and might increase in September.

Alimony was part of the agreement, but my ex-husband has lost his job. So I'm on my own with a teacher's salary and $2,318 a month in house payments.

I would love some ideas on how to save and bring in extra income to augment my talks with my banker, financial planner and accountant.

Don't beat yourself up about the mortgage you took out three years ago. All you can do is make the best decision possible at any given moment. From your description, it sounds as though taking over the house was the best idea at the time.