Should I foreclose?

I think my house is unsellable for anything near a reasonable price. We've been trying to sell, on and off, since 5/2006. Our initial price was $549,000 and now we're down to $469,000. We owe $400,000. Our current appraisal is $435,000. We're in a residential/commercial area and everything negative related to this area is out of our control. The house next door is a home for men with developmental disabilities (i.e., mildly retarded guys). Next to that is an empty commercial building that is for sale by owner. The next building has a fence around it and will be demolished soon. There are 2 commercial buildings across the street that are empty and for sale.

We are not in a position financially to sell our house for less than what we own on it. We also purchased our next home in 11/2006, so we've been paying 2 mortgages for a long time.

Does it make sense to foreclose on the house we're trying to sell just to stop the bleeding? We really need some expert help!!!

You should review detaild with local counsel and get expert advice.

But have you also firstly consulted the lender and asked about rescheduling or reducing payments etc. The lenders are desperate in many situations too.

I think you should most definitely look into expert advice. It is correct that lenders are starting to work with loan modification and loss mitigation services to negotiate interest rates for home owners in foreclosure. There are alot of them out there but I was in a situation where I was way behind on payments. My rate had adjusted from a 4.5 to an 11.50 and as you can imagine I was absolutely in the worst financial position imaginable. It weighed on my marriage and i thought this was it.

[StopForclosureNow]

Use Accord and Satisfaction (a.k.a. Payment)

Payment is the defense to any foreclosure action, but it becomes much more
effective when you can actually prove that payments were made. Copies of canceled
checks are always of help and should be attached to you answer and labeled as Exhibits.
A foreclosure claim must be discharged if the person against whom the claim is asserted
can prove that payment was made to the lender and accepted by the lender with no
dispute. If the bank has continued to accept your payments, they don’t have the right to
foreclose on your home for not paying.

That's one tip, I was wondering if i could get your feedback. Im putting together a new course for homeowner's call "How to Stop Foreclosure NOW,"
I really love you feedback on whats your #1 question is related to foreclosure as a homeowner.

To say "thank you" for helping me out, you'll get a copy of new course before we release in into the market.(should be ready in a few weeks). This course will sell for between $79-$99, but ill share it with you for free just for giving me feedback.

Its quick and only takes 1 minute. You can type your question here:

hxxp://homelock.blinkweb.com (just change "hxxp" to "http")

Thanks in advance

Jason