bankruptcy vs short sale?

Question by JOHN V: bankruptcy vs short sale?
Hello All , have been doing RE for a few years in NY in an area hard hit by foreclosures. Plenty of modifications going around(some people pay thousands!!) which is crazy.
Can an attorney give an an unbiased approach as to whether Bankruptcy is better than a short sale. Certain attorneys have become super aggressive in marketing bankruptcy to these underwater owners. Owners ask me about bankruptcy, obviuos it wouldnt benifit me to have them do bankruptcy but I want to give the best possible case(info) for both if they do ask me.

Best answer:

Answer by Kravis
You want an attorney to answer your question? Then you have to pay an attorney.

Add your own answer in the comments!

Tags: , ,

Category : Blog

2 Comments → “bankruptcy vs short sale?”

  1. Christopher B

    Mar 20, 2014

    Short Sale would be better for them as long as they ensure that there will be no Deficiency Judgement (that the bank will not come after them for any losses the bank incurs during the short sale process – they should get that written into the short sale contract).

    Bankruptcy will do nothing to modify the loan, or get rid of the unsecured amount of the mortgage (the amount the property is underwater) – but it will ensure there won’t be a deficiency judgement if they do decide to let go of their house, or it may reduce their other debts enough that they can now afford the house.

    In either case, there will be some damage to their credit report – the Bankruptcy staying on for 7 years or more.

  2. Othniel

    Mar 20, 2014

    You must know some real estate attorneys pretty well so there is nothing to prevent you from calling one of them to see what they can do for some of your clients. You can refer some business to a good attorney and in turn he or she may also refer some business to you.

    I think that what is best for one person may not work for someone else but they have to lay all of their cards out in plain view. I wouldn’t think that bankruptcy would be better than a short sale.

Send to Friend

Email Agent

SEO Powered By SEOPressor