If the value of your mortgage exceeds the value of your house, your home is “underwater.” It’s not an enjoyable position to be in and, what’s more, it probably means that you’re experiencing financial difficulties in other parts of our life, too. Perhaps you’ve even considered bankruptcy.
Personal bankruptcy may be a solution to the problems you face. And, if that’s the right course of action for you, the dedicated attorneys and professionals at the Dallas law firm of Fears Nachawati can help you navigate the challenges and opportunities associated with declaring Chapter 7 or Chapter 13 bankruptcy.
It’s important to note, however, that bankruptcy may be a more extreme remedy than the one you may actually need. Selling your home for the value of the mortgage (but less than the full value of the property) is known as a “short sale.” For many debtors, a short sale may have the advantage of knocking out your largest financial obligation, freeing up your monthly income and settling with your primary creditor. Additionally, a short sale may leave you with a better credit score than what you might have post-bankruptcy.
Short sales aren’t risk free. Depending on your type of mortgage, you may have lingering debt following a short sale. And if you have large amounts of unsecured financial obligations – such as credit card bills – then a short sale may not do enough good to justify the personal and financial costs.
Want to know whether bankruptcy or a short sale is your best bet? Our attorneys can help you answer this and many other important legal and financial questions. For your free consultation, talk to a Fears Nachawati representative today. We’re dedicated to helping clients just like you.