Can You Do a Short Sale After Bankruptcy? Shocking Truth
Can You Do a Short Sale After Bankruptcy? Shocking Truth
Many Americans carry debt after bankruptcy and consider housing options. Rising mortgage rates make solutions urgent. This question touches both relief and risk.
How Short Sales Interact With Bankruptcy
Can You Do a Short Sale After Bankruptcy? Shocking Truth is a lender approval for less than owed after discharge. Studies indicate lenders may accept this to avoid longer foreclosure processes. You can pursue this if your loan is current and the lender agrees.
Why Borrowers Consider This Path
Certain situations make a short sale practical post-bankruptcy. Research shows lenders weigh loss minimization and homeowner cooperation. Buyers benefit from a lower purchase price. This option reduces time on credit reports compared to foreclosure.
Takeaway
Understand lender terms and get any agreement in writing.
Q Can you do a short sale after bankruptcy discharge with the same lender? A Yes, if the loan is performing and the lender approves the short sale offer.
Q Will a short sale after bankruptcy stop a deficiency judgment? A It might, depending on state law and lender agreement in the short sale contract.
