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Bankruptcy or short sale, have a few 90,120 days lates

Posted on: 11th Jul, 2010 07:14 pm
i'm considering doing a short sale, but i have not many 90 days and 120 days late on my mortgage, i have not paid for the past 14 months. I have been trying to do a loan modification and it took this long, but the modification was still not affordable to me, so wanted to know if a short sale is a good idea, or because i have so many 90 and 120 day late items on my credit, it doesnt matter whether I do a short sale or bankruptcy my credit is already bad right? How long would i expect before i can purchase a home, under either conditions? i'm just thinking if my credit is already ruined and bad anyways, might as well do a baankruptcy and start fresh.
Hi jackabbot213

As you are 14 months behind on your payment so short sale or Bk,you can opt for either of it.But ch.7 BK will give you a fresh start and thus it is most advisable.

keep in touch..........
Posted on: 11th Jul, 2010 08:18 pm
welcome jackabbot,

filing bankruptcy should be your last option. you should first apply for a short sale with your lender and check out if he agrees to it. you will be able to get a mortgage after 2-3 years after your property is short sold. if you file chapter 7 bankruptcy, then you'll have to wait for 2-4 years in order to get a loan. if you file chapter 13, then you'll have to wait for 1-2 years in order to get a mortgage.
Posted on: 11th Jul, 2010 11:19 pm
Will the wait be 2-4 years if i do the short sale and a bankruptcy, to wipe my credit cards? i'm ok with waiting an extra year, to save for a down payment.
Posted on: 12th Jul, 2010 08:45 pm
Hi jack,

Though you've a short sale in your credit report, still you need to wait for 2-4 years in order to qualify for a loan. You may even wait for an extra year and save for the down payment. Moreover, you can also improve your credit score to quite some extent if you wait for an extra year.

Thanks,

Jerry
Posted on: 13th Jul, 2010 02:44 am
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