My Client Will Have To Declare Bankruptcy Anyway
The client I am working with will have to declare bankruptcy regardless of whether I’ll be able to conduct a successfully short sale because other than the house they can’t afford they have some credit card debt + medical bills.
So at this point I need to convince him that he will be better off with just bankruptcy whether than bankruptcy AND foreclosure.
Can anyone help me explaining to my client what additional (to bankruptcy) future complications can be cost by a foreclosure on his record?
At this point he doesn’t really see how a short sale can improve/help his situation.
As always thank you 
Alex[ Edited by akasman on Date 11/01/2003 ]
I work with real estate brokers to facilitate sales for their Clients whose listings require short sales... and I run into that, too.
While personal credit difficulties and even bankruptcies are becoming more commonplace, there is NO excluse to losing a home at Sheriff's sale or (whatever) foreclosure mechanism is utilized in your jurisdiction.
Lender can accept a bankruptcy... but are not as willing to overlook the loss of the house to foreclosure.
If your Clients are interested in salvaging their future creditworthiness... a preforeclosure sale or preforeclosure short sale is more acceptable than a total loss.
While they might not care much about their future... they should. Time will pass and things will change. They'll regret not having considered a preforeclosure short sale.
So what should I say to my client? That he is more likely to get a mortgage (or other kind of credit) again if he will not have a foreclosure and only bankruptcy?
Or perhaps he will be able to do it faster????
Quote:
On 2003-11-01 13:32, TheShortSalePro wrote:
Lender can accept a bankruptcy... but are not as willing to overlook the loss of the house to foreclosure.
Yes, and then offer him a thousand or more when you cash out on the house. They will consider it a small fortune due to the circumstances they are in and will also get them back on the right track faster.
If you are successful with the bank on the short sale and you use a quit claim deed, I would offer him 1k when he signs the quit claim and another 1k if he can get out in two weeks. It could wind up costing you a lot more if he gets cold feet halfway through this thing and decides that he doesn't want to move yet.
Sorry, but if you negotiate a successful short sale, what would be served by getting a QCD? If you sought a QCD prior to closing, you could invalidate the short sale approval.
Thank you people for your replies!
Unfortunately looks like this deal is not going to go through anyway because owners decided that “this doesn’t make sense to them”. And they go this idea from their lawyer so I am not going to argue here although I feel very frustrated. How can someone advise his client not to attempt to avoid foreclosure I think they (including the lawyer) just don’t understand what a short sale is.
[ Edited by akasman on Date 11/04/2003 ]
Best to chalk it up as a learning experience and revise your pitch.
Better luck next time.
[addsig]