Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear about your situation.
Once a foreclosure has begun, it becomes less likely that the bank would agree to a short sale, because they're already spent time and money on the case. They'd likely require you to give them a lump sum payment above and beyond the current value of the home. Other other problem is, short sales take time. It's not likely that you'd be able to get it done before May 5. I'm not saying you cannot ASK - but you should know that they might turn you down.
Your lawyer is unfortunately right. Assuming you don't have the cash lying around to save your home or know anyone you can borrow it from, bankruptcy may be your best option. Bankruptcy will stay the foreclosure and should give you somewhere to live at least temporarily. That also prevents the lender from getting a judgment against you for the outstanding balance on the loan after the foreclosure sale. Talk to your lawyer to see if he'll reach out to the bank to propose a short sale. If he can't or won't do it, then you may want to seriously reconsider the benefits of having your debt eliminated by bankruptcy.
It's important that you are 100% satisfied with my courtesy and professionalism. Thank you.