what is better a short sale or filing for bankruptcy, house is going into foreclosure the end of this month 05/29/2013, please advice...thank you

Asked by toa_family, Long Beach, CA Fri May 17, 2013

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Arcie Pragale…, Agent, Lakewood, CO
Fri May 17, 2013
Short sale is better. A bankruptcy would not keep you in the home in the long run. A short sale also has a less damaging effect on your credit compared to foreclosure and/or bankruptcy. Please contact me to discuss your situation (310) 218-2975. We are practically neighbors. I am located in Lakewood, CA.
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Sara Mehrpou…, Agent, Los Angeles, CA
Fri May 17, 2013

Usually, a bankruptcy will just postpone the foreclosure however, it will not stop it from happening-- eventually. Keep in mind that a bankruptcy should not be done just because of the foreclosure-- you would need to consult with a BK attorney. Short sale would be beneficial to you in the long run & is better than a foreclosure. Feel free to visit my website http://www.short-sale-vs-foreclosure-help.com or contact me directly at 818-903-2040. I would be able to assist you if you have any short sale questions or need short sale assistance.

Good luck,
Sara Mehrpouyan CDPE
Rodeo Realty
Direct phone 818-903-2040
Dre license #01712757
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Suzanne MacD…, Agent, Succasunna, NJ
Fri May 17, 2013
Talk to BOTH an attorney AND a realtor! If you do not intend to stay in the home, you should call a realtor TODAY! Sometimes the banks will hold off on the foreclosure to try to short sell the home. And, if they can't they may offer you the option of doing a deed in lieu of foreclosure, either one of which would be far better than having a full blown foreclosure on your credit history.
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Curly Sue, , Texas
Fri May 17, 2013
It doesn't sound like you have time to short sale.
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James Sanchez, Agent, Burbank, CA
Fri May 17, 2013
Depends if you want to try to keep the house.... I know a few people that did a BK and the lender did a loan mod. When before they were trying to do a loan mod the lender wouldn't touch it... talk to the person who does your taxex, talk to a bk attorney to see which way you want to go. You can talk to a real estate agent but you know what they are going to say. Me I would do a foreclosure, if the bank is not going to work with you but would be willing to see the property to a buyer at a discount price, then don't work with them... either way you have some options, talk to all the right people and go from there.

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Belinda Hern…, Agent, Los Alamitos, CA
Fri May 17, 2013
Hi Toa family,
Please seek advice from an attorney, and your CPA. It does not sound like there is much time to decide what would be best for your situation. If you have questions regarding short sales give me a call and we can discuss.

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Laura Coffey, Agent, Santa Clarita, CA
Fri May 17, 2013
No one here knows your whole situation or your entire debt. I would talk to a BK attorney immediately and discuss your options.
Then I would talk to a Realtor. Depending on your situation you have time to do a short sale as well.
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Emily Knell, Agent, Huntington Beach, CA
Fri May 17, 2013
Looking at the other answers about choosing an agent based on where they live or their office location is NOT a wise decision with regards to short sales. However I do live on the Long Beach border, in Rossmoor (Los Alamitos), I work from home, but my office address is technically Huntington Beach.

I have successfully closed all of my California short sale listing attempts within about an 80 mile radius of where I live. I have closed short sales in Long Beach all the way out to Riverside. I have advised short sellers & interviewed agents for them to work with as far away as Orlando, Florida. Being licensed in the entire state of California, if I had the opportunity I could help a seller with a short sale in Sacramento. I have also closed many short sales in Las Vegas.

When you call, I can talk to you about this some more. When you see my live demonstration of my success closing short sales, you will be at ease that you're working with a true professional.
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Max Hunter , Agent, Long Beach, CA
Fri May 17, 2013
The consequences of each differs based on each individual situation. An attorney can review and advise. But know that a bankruptcy doesn't completely release you from having to deal with the house. It just delays the inevitable which is the lender either taking the house back or somehow getting paid some of the money that was borrowed. In my experience, LA county takes around 3 months to process a bankruptcy these days. Once the bankruptcy is complete you have to deal with the house.

The lenders are very well aware of the housing prices and they know they will not recover all the money they lend. Even if they foreclose on you, they have to sell the property for less than what they are owed. Except that Short sale shows your good faith to the lender that you are trying to remedy the situation, like a credit card balance settled for less. There are all sorts of releaf for homeowners put in place for short sale. I have personally negotiated over 200 short sales since 2008 and will be happy to answer all your questions and share the information I have from different lenders and the IRS. Depending on who your lender is, it may not be too late to try a short sale. Some lenders easily allow you more time to go through the process because sometimes foreclosure costs them more than agreeing to a short sale. You and your real estate professional should act fast.
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Mary Colleary, Agent, Long Beach, CA
Fri May 17, 2013
Short Sale,would be better. because you may qualify for the federal debt forgiveness act so you will not be liable for the balance on the loan that is not paid, also you will not have to claim that money on your taxes.
Let me know if you would like more info on short sales, I have closed many short sales suceessfully and can help you as well.
Mary Colleary
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Annette Law…, Agent, Palm Harbor, FL
Fri May 17, 2013
A short sale is always better than a bankruptcy.
However, what is best for you depends on your specific situation.
A successsful short sale requires TIME.
It is possible you have waited to long.
However, many real estate professionals know how to make things happen FAST. Fast will be directly dependant on your situation, the lenders involved and the current status of your defaulted loan.
Several Long Beach agents will respond to your question. You need to CALL several of them and hear how they would directly handle your situation. The one that says, "Put in MLS" is the one who is unlikely to solve your situion in time to benefit you.
Seriously, time is not your friend. Pick up the phone and call a Long Beach professional.

Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
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Scott Godzyk, Agent, Manchester, NH
Fri May 17, 2013
You should have your attorney go over the differences giving your specific situation. A short sale is usually better because it may affect your credit for 2-3 years on average where a bankruptcy sticks around for 10. If a short sale is negotiated right, it could save foreclosure and allow you to sell. There are many variables and a experienced short sale listing agent can go over yours with you.
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