Expert: Terry Leeders - 5/31/2008

Question
I called the bank to see if there is anything else I need to do with my house and they said I should do a short sale.  This would prevent a foreclosure on my credit report.  I surrerened the house in my BK petition.  Should I do this short sale and get this over with asap.  They made it seem like this would be my best option rather than sitting and waiting for the foreclosure process to take place.  Do I open myself up to any additional liability if I do this?  I would be open to a short sale if it is safe to do so.  Thanks for any help you can give.

Answer
Either way, the bankruptcy discharged the debt.  You can always sell the home up until the foreclosure goes thru (mortgage company would prefer this so they won't incur any more costs or have to sit and have an empty home when this is done) You would only be responsible for any utility usage after the bankruptcy was filed, you would also have to keep the property in good repair, mow lawn etc to prevent any fines by the city.  Also, you should maintain insurance on the property to protect you in case anyone should get hurt on the property until it forecloses or sells.  So, it would be up to you if you want to try to sell it first or not, but it is not necessary. As for the credit report, the bankruptcy will trump the foreclosure, but some people would prefer not to have the foreclosure show on the report.