Secure A Debt-Free Future
Homeowners whose mortgages are in distress urgently seek solutions of various kinds, including mortgage modifications and short sales. Since the mortgage crisis deepened in the latter half of the 2000s, there has been a lot of buzz about short sales. Through a short sale, a lending bank will agree to allow a homeowner to sell a house for the current market value, even if that value is less than what is owed on the mortgage.
Historically, the lending bank would often agree to release the homeowner from any resulting deficiency claims, but current trends are moving in the direction of lenders not releasing the homeowner from the remaining mortgage debt. A house that was purchased for $200,000 might be sold at a short sale for $100,000, for example, but the homeowner is likely to remain responsible.
If you are looking to get out from under a home you cannot afford, contact our Tampa bankruptcy lawyer today.
However, there are many issues which can arise as a result of a short sale.
Such problems do not exist when a borrow files bankruptcy. Whether it is Chapter 7 or Chapter 13 bankruptcy, a debtor does not have to pay income tax on any discharged debt or portions of debt eliminated through a Chapter 13 reorganization. Furthermore, a debtor who decides to let his or her home go into foreclosure while also filing bankruptcy has the benefit of being able to live in the home with no mortgage payments due while the foreclosure is progressing. A foreclosure usually takes a year or two to complete, so this year or more with no rent or mortgage payments can be a huge benefit to overwhelmed debtors.
Discuss your mortgage problems, your bankruptcy and the possibility of a short sale with an experienced Tampa bankruptcy lawyer at Debt Relief Legal Group we have helped many debtors navigate the system and emerge from foreclosure and bankruptcy with a fresh start. Rest assured that if we believe that a short sale is in your best interests, we will of course advise you accordingly. We will never urge a client to file bankruptcy or allow a home to go into foreclosure unless we believe it is in that client’s best interests.
Call our team today at (813) 940-5120 to get started with a complimentary consultation.