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Lucy, Esq.
Lucy, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 27692
Experience:  JA Mentor
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We red a lawyer to handle our foreclosure proceeding. The

Customer Question

We hired a lawyer to handle our foreclosure proceeding. The foreclosure process is already
scheduled to sell our home at auction on 5/5/2016. At this point we are thinking of asking
the lender to reconsider our case for a short sale. Is there still time and possibility that our
bank would consider that option? Our lawyer advised us to consider filing for bankruptcy
but our problem now is we won't have a place to live. We know we will have problem in
buying another house because of our current hardship. Both me and my husband just had
our retirement at the same time when we filed for foreclosure. Please help us come up to a
solution to this problem. Thank you.
Submitted: 8 months ago.
Category: Real Estate Law
Expert:  Lucy, Esq. replied 8 months ago.

Hi,

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.

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