If you are planning on selling you home through a short sale, you might want to hold off on filing for a bankruptcy if you haven't already. *As a disclaimer, I am not an attorney and I am not offering legal advice.*
A bankruptcy halts all foreclosure proceedings until the bankruptcy is discharged or dismissed; permission from the court must be given to sell the property as part of the bankruptcy. Permission can be granted, but it will delay and prolong the short sale process without a doubt.
Another reason you may want to hold off on a bankruptcy is, in the event of having a deficiency judgment filed against you, you can include the deficiency in the bankruptcy after you close the short sale of your home. Deficiency judgments are becoming more common in situations where income is not the cause for failing to make payments such as divorce or separation, though this is not always the case.
If you have questions about short sales or how a bankruptcy could affect your ability to sell, call me at 630-673-6233. Using an agent that is knowledgeable in short sales will make the difference in getting the bank to agree to the short sale whether you are involved in a bankruptcy, or not.
Julie Ferenzi | REALTOR®
Plainfield IL Homes for Sale
Short Sale Specialist
630-673-6233
Filing for bankruptcy should always be viewed as a last resort. We had a last 2 days short of an auction sale who was on her way to file when we had her turn around- her attorney got the sale taken off the schedule and we wanted to keep the filing as an option for later.