Should we continue with the short sale or go into bankruptcy?
We have been through a failed short sale twice with our home. Both buyers walked before we could get the approval finalized. We stopped paying both our mortgages and our HELOC back in April due to financial reasons. We moved into an apartment in July with a 12 month lease. With the latest buyer walking last week, the only way we can afford another short sale is if we break our lease and move back into our home. We cannot do a loan modification because we do not qualify. The apartment complex stated that we need to give 60 days notice and an additional 2 months rent to break the lease. That’s over $ 6000. We don’t have that kind of money. Our house is almost in foreclosure. We really don’t want to go into bankruptcy. Does anyone have any experience with this or any recommendations? Thank you.
We don’t qualify for the loan modification because our current loan is already less than 31%. We are quickly running out of time to do another short sale.
We do not have any other debt other than a school loan and car payment, which are both small monthly payments. All credit cards were paid off awhile ago. We don’t even own a credit card now.
Everything is paid using an envelope system (Dave Ramsey style.)