By filing for Chapter 13 bankruptcy, they were able to stop the foreclosure and remain in their home. With their now-steady income, they are able to pay their mortgage each month while also spreading the $25,000 back payment over a five-year period. However, if they fall behind in their...
While a foreclosure essentially lets you walk away from your home—albeit with grave consequences for your financial future, such as having to declare bankruptcy and destroying your credit—completing a short sale is labor-intensive. However, the payoff for the extra work involved in a short sale...