Tweet
Bankruptcy may not be your best or only option if your short sale and/or deed in lieu plans don't work out. It is worth discussing the matter with a reputable bankruptcy attorney. (You might get a free consult or you might have to spend a few hundred dollars.)
Since you don't seem to have any other debt problems, if you can't do a short sale or a deed in lieu, you may be just fine with a straight, non-bankruptcy foreclosure. (There will still be tax consequences no matter what, but the credit hit may be different.) Alternatively, it may be possible to get some interest rate and/or principal relief (at least on the effectively unsecured second loan) through the bankruptcy system, which might allow you to stay put and weather the storm.
Since you don't seem to have any other debt problems, if you can't do a short sale or a deed in lieu, you may be just fine with a straight, non-bankruptcy foreclosure. (There will still be tax consequences no matter what, but the credit hit may be different.) Alternatively, it may be possible to get some interest rate and/or principal relief (at least on the effectively unsecured second loan) through the bankruptcy system, which might allow you to stay put and weather the storm.
Comment