Winchester, 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.

What? Yes! An agent on desk duty actually asked me that when I was phoning in to set up a showing. Apparently it was the same condo that she was preparing to show her client and she insisted that I was honest with her and let her know my clients name!

Really? Seriously? I assured her that it was just a coincidence, and as I hung up the phone I had to ask myself "Where was her Buyer's Agreement?"

For perspective clients and working agents we must have an agreement to outline our expectations and goals during our transaction. Remember to be successful you need to know the direction your headed. Make sure that your agreement is your map, and that you know which agent is driving you towards your destination. Its not our client's job to make sure that they use us, its our job to make sure that they know to call us for all their housing needs.