IS BANKRUPTCY REALLY THE BEST OPTION IN A SHORT SALE? Kissimmee- St Cloud Homes

IS BANKRUTCY REALLY THE BEST OPTION IN A SHORT SALE? A Short Sale occurs when a property owner suffers a hardship, preventing them from keeping current on making their mortgage payments. There are several reasons a financial hardship can and does occur. Loss of employment, divorce, reduction is wages, or medical expenses are just a few. More times than not, the property is no longer worth what is owed against it.

A Short Sale can be applied for; based on the hardship. If the home is your primary residence some lenders may qualify you for depending on your particular set of circumstances. There has been major attention focused on lenders and new legislation put in place which may benefit you.

But in cases where the property is an Investment Property most often the Lender's Investor will want the seller to contribute something at closing and share the loss.

This could be signing a Promisory Note over an extended time period, or bringing cash to closing. Failing to pay your mortgage means you could lose your home and damage your credit.

Filing Bankruptcy is an option but is it really the best one?

It is paramount to putting a bandaid on a bleeding artery in terms of damage to your credit. Yes, it will stop collection calls.

Eventually the bank will pursue foreclosure. Compounding the damage to your future credit.

So what are the options?

1) Avoid knee jerk reactions.

2) Look long term- the decision you make today will have an impact on you in the future.

3) Weigh carefully- the cost of damage control regarding your credit rating. If paying down a portion of the debt over time is manageable; you may want to give that some serious consideration.

Discuss your financial situation with a Tax Advisor. Seek Legal Advice from an Attorney.

Nothing is worse, than having a ready, willing and able buyer and discovering you cannot or will not meet the term and conditions of sale a lender has requested from you. Make an informed decision before you list your home. Talk to your lender and discuss what options you have.