Mackey Law Firm PC managing partner Tim Mackey is an attorney in Scottsdale, Arizona, who specializes in the areas of real estate law, bankruptcy, debt settlement, estate planning, family law, and criminal defense. In these articles, he gives his advice to anyone who’s struggling to make mortgage payments on his home and is thinking about entering into a short sale or foreclosure.
Deciding Between a Short Sale and Foreclosure
Deciding between a short sale or a foreclosure on a home is a personal decision that is based on your own financial situation and the willingness of your lender to negotiate on your mortgage. For homeowners whose borrowers are unwilling to modify the terms of their loans, a foreclosure may very well become a better option.
Will Doing a Short Sale Hurt My Credit?
Unlike foreclosure or bankruptcy, selling a home through a short sale will not generally hurt a homeowner’s credit. Even if your credit score does dip, it usually will not go low enough to prevent you from renting another home immediately or buying one in the future.
Is Doing A Short Sale Better than Filing For Bankruptcy?
Short sales and bankruptcies are two options that are available to help people who are struggling to meet their financial commitments. Although each option has its pros and cons, there is not one particular choice that is better than the other. Here is more information about each option.
When Should You Walk Away from a Mortgage?
In today’s economic market, there are certain times when homeowners are being advised to walk away from their mortgages and enter foreclosure. If a debtor has tried and failed to negotiate with a lender who is unwilling to modify the terms of his mortgage, then it might be a financially better decision to let the home go into foreclosure than to continue making payments.
What If My Landlord Enters Foreclosure On a Home I’m Renting?
If a landlord enters foreclosure on a home that he is renting out, that does not give the tenant the right to stop making payments. Before a tenant can stop making payments on a home, he must either have a judge’s approval or be able to show that the landlord somehow violated the terms of the lease.
