Should I File Bankruptcy or Short Sale My House in Georgia?
I think anyone who might be interested in keeping their house should explore Chapter 13 as an option before deciding to do a short sale or let the house foreclose. In a Chapter 13, we can take the payments that you are behind on and put them into a payment plan that will work for you. If you are in a position not able to make the future mortgage payments on your house, Chapter 13 may not be the best answer.
A short sale is when the lender agrees to take a lower price for a house than the amount owed to the lender. The main advantage of a short sale is that it protects your credit score from the damage of a foreclosure. A short sale might be a good option for someone whose only debt problem is a house that can’t be sold for the amount owed. People who owe credit card debt, medical debt, car debt, and other types of debt should explore Chapter 13 and Chapter 7 before making a decision to short sale.
Amy Cochran, a short sale specialist from Cartersville, says that one of the most common mistakes she sees people make after they fall behind on house payments is that they move out of the house before the mortgage company takes any action against the house. When a house is empty, it is much more difficult to get a short sale completed.
It can’t hurt to explore all options. Weigh the pros and cons of each option before making your decision.