Would Bankruptcy Be a Better Option Than a Short Sale?
If you are having financial troubles and find yourself "upside down" on your mortgage, owing more than your home is currently worth, you may be considering a short sale as a way to avoid a default or as an alternative to bankruptcy. But is this the right choice for you?
An experienced attorney from the Law Offices of Buckey & Schurter can help you explore your options and protect your interests. Call 951-893-5394 or toll free 888-591-8958 for a free initial consultation.
What Is a Short Sale?
In a short sale, a lender agrees to reduce the debt on a property so the owner can sell the property at current market value.
But while this is one way to avoid default, there are significant drawbacks:
- The lender may still be able to come after you for a deficiency
- It is a very long process that requires you to be very involved with your lender
- A short sale is better than a default, but it will still damage your credit
- You may still owe taxes to the government based upon the amount of the deficiency from the sale of the real property
Is Bankruptcy Better for You?
Depending on the specifics of your situation, bankruptcy could be a better choice than a short sale. If you are considering a short sale of your home, your credit is probably already in trouble. Rather than hurting it even more, it may be advantageous to file for Chapter 7 or Chapter 13 bankruptcy, which will allow you to rebuild your credit from scratch.
Our experienced bankruptcy lawyers can help you explore all of your options and find a solution that works for you. Contact us today for a free initial consultation. We have locations in Riverside and Corona, California.
