We often speak to individuals considering, pending, or with a complete bankruptcy, most believe that they cannot do a short sale or that they should not do a short sale. Good news, this is not the case.
We have assisted many clients during or after a bankruptcy with a short sale. Those clients, due to the Bankruptcy, are not typically required to provide financial documentation required in short sales without bankruptcy which means less paperwork and hassle for the client. Their credit typically repairs quicker than those that let their properties foreclose after Bankruptcy. And sometimes, they even receive a moving incentive from the bank at the closing of the short sale, as much as $10,000.00.
In this case, with one loan (Ocwen), we had a Client considering bankruptcy during the processing of her short sale. While the Client's bankruptcy process did temporarily stop the short sale process, once their bankruptcy was discharged, the short sale process resumed. Notwithstanding, we were able to get the short sale approved in 2.5 months and closed a month thereafter.
The Client was able to walk away from an underwater home without losing the home to foreclosure, leaving the home on their own terms and starting their credit repair process sooner. In non-repayment type bankruptcy, credit does not start to fully repair until the home forecloses or sells via short sale, since this short sale was accomplished quicker than foreclosure, the credit repair process started sooner for this Client.
The Client did not pay any amounts out of pocket to third parties or to our office to accomplish these short sale results.
If you or someone you know is in an underwater home, thinking/pending/discharged from bankruptcy, or in foreclosure, please have them reach out to us to see if a short sale is right for them, please contact us at 773-539-5970 or firstname.lastname@example.org to see if we can start assisting you today with no money down or out of pocket attorney fees for the short sale process.
*Past results do not guarantee future results*