With our economy in the shape it's in today, you will find there are three distinct groups considering selling their house. The first group is those wanting to move up in the market place. Generally, this is the group least affected by the downturn in the economy.

Many of these homeowners have owned their houses for many years and they either own their house outright or have it paid down so much that selling in today's market will not bring them a loss. They are the ones who probably bought many years ago when prices were very low.

The second group is those who need to scale down. Maybe, they lost their job and were forced into a lower paying job. Now, their mortgage payments are much too high for the income they were forced to accept. The problem for this group is the asking price they should place on their house.

Many times, pride comes into play and homeowners are not willing to accept the brutal truth. While the market is trying to bounce back, it is still a buyer's market. That means that sellers must be realistic with their price and think, for a moment. They must know exactly what they are trying to accomplish.

If, for instance, the seller is not in a hurry, then holding out for a stronger price may be the thing to do. If, on the other hand, they are headed for financial problems, because of the high payments, the prudent thing for them to do may be to make whatever concessions are necessary and close the sale.

By giving-in, in this manner, they have accomplished two things. They have relieved the mortgage payment problem and maybe they will be able to put a little extra cash in their pocket which they can use as a cushion in order to get through this down turn in the economy.

The third group of homeowners wanting to sell their house is the, unfortunate, desperate. This is the group of homeowners who have been devastated by the economy and simply cannot afford another day of living in their house. Maybe they lost their job and cannot find another or a balloon payment, on their house, came due or an interest only loan matured or, all of the above. Whatever the reason, they are in big trouble and they must move.

They have several options, depending on their situation:

Number one, they can sell their house quickly for the balance of their mortgage and walk away with no cash.

Number two, they can sell their house quickly to a family who cannot qualify for a mortgage. It's called a wrap around mortgage. The new buyer will make payments to the seller and the seller will continue to make payments to their mortgage company. With this method, a title company and escrow company are required. Do not notify your current mortgage company; because they will not like this arrangement, however, this method is used every day. The insurance and taxes for the property will need to remain in the sellers name and the buyer will make those payments to the escrow company. With this method, the seller can normally walk away with cash in their pocket.

Number three, they can rent their house and hope that the renter is dependable and pays on time. This simple method is perfect for anyone who wants to maintain a good credit rating and still hold property for the future.

Number four, they can have a short sale with their current mortgage company.

Number five, they can simply lose their house to foreclosure.

Before your credit is affected, it would be in your best interest to take action first. Desperate times call for desperate actions and the time has come for creative thinking and creative action. Do not wait for a miracle; take action before damage is done to your credit and while you still have options.