There are few things in life as upsetting as being forced to move. Mortgage holders who are in financial trouble typically worry that they may end up living in a worse place than the place they now call home. If you have children in school or if there are other compelling reasons to live where you do, you are no doubt searching for any reasonable way to stay where you are despite your mortgage troubles.
Some borrowers mostly need time to straighten out financial messes in order to put their mortgages back in order. For these borrowers, the automatic stay in a bankruptcy can be a godsend. You may already be aware, or you may have learned from this website, that filing bankruptcy can enable you to stop foreclosure, thanks to the automatic stay. If your home is at risk of foreclosure, you should first investigate the benefits that bankruptcy can offer.
Short Sale: Is This A Good Idea For You?
You may have come to the conclusion that you will be better off by letting the house go and moving forward without the great burden of an unpaid mortgage. You and your lender may have already discussed plans to resolve your mortgage troubles with a short sale. Under these circumstances you will walk away with no house and sometimes with no mortgage liability, although it is possible that the mortgage company may not agree to the short sale without you still remaining liable for a portion of the mortgage debt after the completion of the short sale.
Be very careful when lenders try to leave in language holding the borrower ultimately responsible for repaying any portion of the mortgage as part of the short sale agreement. Agreeing to resolve your mortgage arrearage through a short sale is risky business, and you need a lawyer's advice so you will:
- Understand what you are agreeing to if you let your house go in a short sale.
- Understand the tax consequences of agreeing to a short sale. Will you be responsible to pay taxes for the forgiveness of the remaining debt.
- Know your options and opportunities as well as likely pitfalls either way. Get the facts concerning how long you can stay in your home, what your ultimate responsibilities will be and the best way to get reestablished in a new home in the shortest amount of time.
- Decide whether you would be better off stopping the short sale before it happens by way of a bankruptcy filing.
You will need to act right away once a short sale has been scheduled if you decide you wish to stop it in its tracks by way of bankruptcy.
Struggling With Excessive Mortgage Debt? Attorney In Illinois Offers Free Consultations.
To schedule a free consultation with a Chicago attorney at any of our convenient office locations, contact us toll free at 888-645-HELP. You may also contact us by email.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.