Short Sale Question: Should I Short Sale Or Declare Bankruptcy?
New Castle DE – The Stop Foreclosure Institute recently received a question from James.
Here is his question. "I am upside down by $300,000 on my home. I want to move, but I am concerned about having that $300,000 debt chasing me for the rest of my life. A friend mentioned I could get it wiped out in bankruptcy. So, here is my question. Should I short sale and then declare bankruptcy. Or just declare bankruptcy and get rid of the house in the bankruptcy? James."
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Here was our answer to James' Question: James, here is something you don't know. In most short sales, the upside down debt will be erased. Yes, the banks will forgive the upside down debt. We recently had a homeowner short sale a house where their bank lost over $400,000. They received a complete release on the debt. The debt was gone and he had no need to declare bankruptcy.
Not a bad deal, no?
Here is the good news for you. First, many states have laws that forbid banks from pursuing you for a deficiency after a short sale or Foreclosure. Second, most lenders do not pursue borrowers. In fact, they will specifically release you from the debt. But, every situation is different.
Talk to an experienced short sale realtor in your area to get more specifics.
Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at wesell@teamsordelet.com.
I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have.
Or, if you prefer, you can call me at 302-476-2057
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification?
Our
Thanks for reading this, David Sordelet.
David is a Real Estate Consultant with The Team Sordelet Realty Group at Prudential Fox & Roach Realtors.
Phone: 302-476-2057. Email: wesell@teamsordelet.com.
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David Sordelet specializes in loan modification assistance and short sales in
David Sordelet, Prudential Fox & Roach Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why? Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding Foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision. You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

