About Frederick County, VA

Millions of Americans are considering this option because of the current state of the economy and the effect it has had on their wallets AND their credit. Bankruptcy may seem like the easy answer, but IT is a long process that will stay with you and your family for years to come. In my next few posts I will be going over basic information, but ALWAYS check with a local attorney for state specific details.

1.) HOW DID I GET HERE? You will need to seriously think this out and document it in a time line fashion. This will not only be helpful with preparing to file, but it will give you a "Script" to use. WHY? You are asking to be forgiven of several thousand dollars of debt, you will need to explain this to several parties and most importantly a judge.

2.) STOP USING YOUR CREDIT CARDS!: This is not a problem for most people, as they are already MAXED OUT, but if you still are using your cards STOP and check with your attorney. In some cases you cannot file if your last account was active with in the last 60-90 days.

3.) CONSIDER ALL OPTIONS: Can you settle with your cards? Can you consolidate? What is your true budget? Maybe if you cut back on certain lifestyle choices, sold a car, or really counted every penny you could avoid this process. Make sure that you have examined all aspects of your financial lifestyle before starting the bankruptcy process.

4.) WHAT BANKRUPTCY IS FOR: Its your last ditch, I have lost my job or other major source of income, I can barely keep the lights on choice. Bankruptcy will not forgive student loans or back taxes, so you will need to make plans for your new budget to include those payments.

5.) WHAT CAN I KEEP? Depending on what your state allows you maybe able to keep somethings or have to give up others. There are several different types of Bankruptcy, each with its own set of regulations.

NEXT: What Documents I will need to prepare to file?

In order to get the highest price when selling your home in the shortest time, you need to know how to market your homes. The better you market your home, the more offers you will get. And the more offers you get, the more choices you have to get the price and terms your seller wants.

The most important factor of marketing homes in today's marketplace is pricing it right. Your price should be adjusted to reflect today's market, and the property's worth. The key is to get people checking out the property at a fair price instead of having no buyers because your price is set too high.

Most homeowners would prefer to know where they're going to live before selling their current home. However, given current market conditions, you should buy before selling only if you can qualify to buy the new house and keep the older home should it not sell quickly.

Most homes sell if they are priced right for the market. But, to be on the safe side, be extremely conservative in estimating the probable sale price of your current home. And, factor in the possibility that it will take longer than you anticipate to sell.

An option for some sellers is to keep the current home as an investment. If you plan to take this approach, be sure to consult with your tax advisor regarding the tax consequences of converting a single-family residence to a rental property.

To avoid the risk of falling short of what you think your current home will sell for, consider selling it before you buy a new home. This may mean moving to an interim rental. If prices are soft in your area, the risk of losing out on home-price appreciation while you rent rather than own a home is slim. You might even get a better deal on the new home by waiting awhile before buying.

Selling first and renting for awhile also removes the pressure of buying whatever might be available, which may or may not suit your long-term needs.

Recently I have had several clients whom I have meet with in the past year about short sales contact me again ready to try the process. Why? Because their LOAN MODIFICATION DID NOT HELP!!! I am not writing this post to deter anyone from trying a loan modification to keep their home. I am writing this post because I want to again stress that loan modifications only work if you have the income to support the modification. Unfortunately if you loose half of your income (spouse looses job), and your mortgage payment is half of your income, even if your lender cuts your payment in half the chances that you will be able to make up the difference are slim to none. Factor in that almost anyone who has bought a home in the last 4 to 5 years may be upside down on their property value, their just is not any wiggle room when it comes to changes in your income.

What can a short sale do for you? It can give you a chance to create a new lifestyle that you can afford and rebuilld your credit more quickly than if you wait until your home goes to foreclosure. Short Sales do need time to work out! Please do not wait until you are six months behind on your mortgage before contacting a REALTOR to help you sell your home! We need time to get in touch with your lender and work out an offer and that alone can take up to three months! For more information on Short Sales and how they work please visit my site www.equitynegotiations.com.