North Lake Tahoe- Bankruptcy and Real Estate: Selling Your Home

Selling Your Home For Bankruptcy

In today’s economy there are many people going bankrupt and are selling their home.  This creates a good market for buyers looking to jump into real estate with a home that is being sold at a deal.  Would a short sale or foreclosure be the best option for you?

Foreclosure vs. Short Sale

Bankrupt sellers’ typically owe more than the home is currently worth and can either let the bank take the home as part of the foreclosure or sell their home through a short sale.  Short sales are designed to leave a lesser mark on the sellers’ credit history by agreeing with the bank to sell the home for less than the bank is owed so the bank isn’t left empty handed.  Through negative consequences of a bankruptcy tend to overwhelm any credit-preserving benefits of a short sale.

With a short sale you must leave the home earlier then you do with a foreclosure.  Foreclosures take time to process and the owner is usually able to stay in the home longer.

If You Have Equity in Your Home

If you have equity in your home, bankruptcy might actually help smooth the sale because the bankruptcy’s automatic stay gives you time to close on a well thought deal.