As home values continue to fall more and more bankruptcy clients are interested in short selling their homes to get out from underneath underwater mortgages, however the real question is what is the benefit of doing this short sale at all.
The short answer is maybe none.
If a new client is serious about filing for personal bankruptcy, is underwater on the mortgage with their home, and intends to surrender the property there is virtually no benefit to going through the hassle of a short sale. In that scenario, the only person who is well served by a short sale is the real estate agent earning a commission.
Local bankruptcy lawyer, Bruce Truesdale summed up the perks and pitfalls of a short sale in his article “Short Sales” Beware The Tax Man.
Interested in how a bankruptcy can help you with your underwater home? Call our office at 732-302-9600 or e-mail our office at firstname.lastname@example.org to speak to one of our personal bankruptcy attorneys and get your fresh start!