If you want to know if you should short sale properties after a breakup or divorce, then you are not alone. In fact, if you are curious about whether or not to short sale a home or just move directly to bankruptcy, again, you are not alone.
If I could only communicate one message in this article it would be that "you are not alone!"
Take the time to read this advice on whether or not you should even be thinking about a short sale as your smartest course of action.
Should You Short Sale Properties
We receive requests for help deciding what to do with real estate 'gone bad' all the time.
Historically, so few people dealt with upside-down real estate issues that you were branded a pariah if you had a foreclosure or short sale on your record. But that just is not the case anymore. The real estate market crash has left millions of people in bad circumstances, and they are facing what feels like the hardest decision of their lives.
Today's article is a response to a reader's question below asking a "should I short sale properties" question. But as you will see in my reply, it really falls under the "how to" side of the question. Below, "DT" writes:
In 2008, I bought a residential property and 2 rentals. Well, after a nasty breakup and horrible renters I'm now in dire straights. I need to know what the best solution is for my situation. I owe more on all the homes than they are worth. I can no longer lease the rentals for the amount it takes to cover the mortgages, which has drained my savings account. The question I have is: Should I short sale and be left with a hefty short sale tax bill for the rentals? Or, should I simply call it quits and file bankruptcy? -- Thank you, DT
You Have Options When You Short Sale Properties
First of all, a short sale is not an event, it's a process.
Before I proceed, I do want to remind you that I am not an attorney and I do not write for the purpose of dispensing legal advice.
Take what I say with a grain of salt, and if you think it warrants further review, I urge you to speak with an attorney on all legal matters.
Short sales take a long time, and the contract process is loaded with so many contingencies that if you are selling a short sale, you can "change your mind" at any time until you have worked out an agreement with your lender.
So if you start a short sale (and execute a contract with a buyer), and the bank doesn't give you an offer that you like, you do not have to take it. You see, knowing how to short sale is as simple as selling your house at a price to a buyer and then finding out what the lender is going to approve. And that is where having an experienced short sale specialist can be the difference between getting rid of a property through short sale versus having to file bankruptcy.
Hire the right short sale agent, one who has demonstrated success regularly that he or she knows how to short sale properties, and you will likely be able to avoid bankruptcy. Everybody with whom I have spoken about credit and credit repair tells me that a short sale is far more favorable on your credit than is a bankruptcy.
So my final answer to "DT" is to work with somebody who knows how to short sale properties and avoid bankruptcy if possible. Remember, you are not alone, there are millions of other people who have or will be dealing with very similar issues. Fix your problem today by meeting with somebody who really knows how to short sale real estate.
Of course, if you need to speak with somebody in Tallahassee who knows how to short sale properties, just drop me a note and we can schedule a time to review your situation and explore all of your options.
Comments(2)