Sometimes the unexpected happens. You can count your pennies, you can skimp on luxuries, but when you lose your job, or you incur unexpected medical bills, you know how fast you can fall behind on your mortgage payments. But, most people think foreclosures are particular to working class families. Here is the story of a fairly well-off family in the Kansas City area who thought they had it made.

Jessica was a corporate executive and her husband, Dave, worked in the advertising field. They were both in their early 30s and had two children. They had a combined net income of nearly $150,000 and a couple of nice cars to show for it. They, like millions of Americans, took advantage of the easy credit market of the past decade to buy a home in one of the tonier neighborhoods near Kansas City. They found to their delight that they didn't have to put any money down on the property they finally chose. Their net income after taxes was about $9000 a month.

Sounds pretty good, right? Well, within a year of moving in, the advertising company Dave worked for failed, and he has to scramble for a new job. The one he found paid less than $40,000 a year. Jessica's banking job was effected as well, due to the general degradation of the housing market in the Kansas City area. They soon found that they were in the red every month. The bank began demanding their balloon payment.

This is when they came to see us.

Jessica and Dave had skipped payments for several months. At this point the bank has several customary options: foreclose, try to collect, write off the loss, or watch you declare bankruptcy. But there is one more: the Short Sale. A short sale occurs when a borrower cannot make payments, but does not want to declare bankruptcy or undergo foreclosure. In this case, the borrower talks the bank into letting himself or herself sell the house for less than is owed, and the bank allows the proceeds to settle the balance.

A short sale is not the sort of thing you want to do without assistance. We were able to negotiate a short sale for Jessica and Dave. Their monthly payments now fell within their grasp and they were able have peace of mind.