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You did everything right. You searched high and low for your new home, had great credit, and, when you found it, you put 20% down. You knew your home purchase was a great investment for your family and future … after all, a house can only increase in value, right?

That was 2006. And now, five years later, you need to sell. Perhaps you’ve had your home listed, without success. Or perhaps you’re meeting with agent after agent who suggest what seem like ridiculously low prices, not even enough to cover your home loan let alone commissions, fees, and all the other home sale expenses.

What now?

There are options. For one, you could rent out your home for a few years until, hopefully, values increase enough to cover expenses or bring a selling profit. You could try to sell your home yourself, but there are pitfalls, legal and otherwise, and you’ll still have to pay the buyer’s agent’s commission and probably higher attorney fees, as they will be doing much more of the work. Or you could sell and bring cash to closing, to cover expenses.

There’s another option, too – a short sale – and, at least until the end of 2012 you possibly might not be on the hook for taxes on the canceled amount of the home loan debt if you qualify for The Mortgage Forgiveness Debt Relief Act and Debt Cancellation. A short sale, in which the bank  accepts a lower payoff of your home loan, can be a better option to explore than foreclosure. There is a lot to know about this option, and specific qualifications. Ask your real estate agent about it or, if you don’t yet have an agent, ask me. I’m happy to help.