bankruptcy attorney utah
Posted by fallenx888x on Monday, September 10, 2012
It is very common for
bankruptcy filers to ask their attorney about the advantages or
disadvantages of proceeding with a short sale of their real property,
either before or after filing for bankruptcy. This didn't use to be a
common question due to the fact that these sales weren't common when the
real estate market was strong. A "short sale" means you are asking
the lender to approve of the sale of the real property for less than the
full amount of the loan. For example, in today's economy, particularly
in states where the bubble's burst was felt most profoundly, it is very
typical for a homeowner to owe more on their house than the house is
worth. This is often referred to as being "upside down." So if a
homeowner wishes to sell his house for the going rate of $250,000
despite still owing $400,00 on one or more mortgages, the sale would be
considered a short sale. Bankruptcy filers, perhaps from the
encouragement of their real estate agents, want to know if performing a
short sale would be in their best interest.In most cases, it simply
isn't worth proceeding with a short sale if you have filed or will be
filing for bankruptcy. First, a short sale can trigger a taxable event
based upon the fact that forgiven debt may be considered as income.
Second, a short sale has almost the same negative effect on your credit
as a foreclosure, and perhaps even worse than a bankruptcy on your
credit.For more info,Please visit bankruptcy attorney utah
Third, it is likely a waste of time and money. Normally, the only party
benefiting from a short sale is the realtor. Fourth, and finally, you
may be able to stay in your home longer by waiting for the foreclosure
process to take its course. Many lenders would rather a house stay
occupied by a non-paying owner awaiting foreclosure than for the house
to lay vacant for an extended period of time.If you are interested in
learning more,check out