Posted on: 08th Nov, 2011 08:03 am
Hello,
We owe $311,000 between our first and 2nd mortgage. Our house is worth around $194,000. Our bills keep going up and I can't keep working OT to pay them. We are trying to decide between a short sale and chapter 13. Any suggestions?
We owe $311,000 between our first and 2nd mortgage. Our house is worth around $194,000. Our bills keep going up and I can't keep working OT to pay them. We are trying to decide between a short sale and chapter 13. Any suggestions?
Personally, if I were you, I might consider both. I firmly believe that when making these decisions, it shouldn't just be one decision or another, it needs to be an overall strategy to deal with everything in the long run. Anytime a house is as upside down as yours, I would recommend a short sale, but many short sales work well in conjunction with a Chapter 13. It depends on many factors though.
Hi eburrows,
A short sale is always better. I will tell you why very definitively. When you purchase a home on a short sale you are helping a homeowner salvage their credit and dignity and helping them out of a bad situation. You are also preventing a large loss for the bank and getting a great deal for yourself. Everyone wins if it is done correctly. A foreclosure will have a very bad effect on a homeowner's credit and the bank will in most cases take a bigger loss than they would in a short sale.
A sellers credit in a short sale will be damaged to a lesser extent than a foreclosure. In most circumstances if you have done a short sale you will not be able to get another loan for two to three years. In a foreclosure it is usually around five years before you can purchase another home.
:idea:
A short sale is always better. I will tell you why very definitively. When you purchase a home on a short sale you are helping a homeowner salvage their credit and dignity and helping them out of a bad situation. You are also preventing a large loss for the bank and getting a great deal for yourself. Everyone wins if it is done correctly. A foreclosure will have a very bad effect on a homeowner's credit and the bank will in most cases take a bigger loss than they would in a short sale.
A sellers credit in a short sale will be damaged to a lesser extent than a foreclosure. In most circumstances if you have done a short sale you will not be able to get another loan for two to three years. In a foreclosure it is usually around five years before you can purchase another home.
:idea:
