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Short Sale Limbo

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    Short Sale Limbo

    Hello,

    Love this forum! My wife and I are separating and I have seen my income dip 65% over the last couple of years. We own a home but it is $30,000 underwater and have racked up $30,000 in credit card debt. We have seriously considered BK but her family deeded her 7 acres 6 months ago and we found out the creditors would more than likely go after it and it would break her parents hearts as it has been in their family for generations. We are meeting with a Short Sale Specialist in ou area next week and I am aprehensive:

    We can't make payments and it would seem we could stop but for how long in a Short Sale? She wants to move out and leave me with the house and I guess that is fine IF I don't have to pay the mtg. '

    What is proof of insolvency when you fill out the 982 form? Any problems proving insolvency?

    If we do a Deed In lieu of Foreclosure can they go after her land like in a BK?

    #2
    What's to stop you from a BK? You're getting divorced, right?
    Once you lose everything you're free to do anything.
    Filed 10/06/2009
    341 11/12/2009
    Discharged 1/15/2010

    Comment


      #3
      Getting divorced correct. Her family deeded her 7 acres of sentimental family land. I file for BK the creditors will go after her land which will "kill her parents". I don't want to hurt them but may have to.

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        #4
        She can buy it back from the trustee, or her parents can.
        Once you lose everything you're free to do anything.
        Filed 10/06/2009
        341 11/12/2009
        Discharged 1/15/2010

        Comment

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