Should I short sale or go into more debt to pay my mortgage?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Should I short sale or go into more debt to pay my mortgage?
I have a home in Roseville and am considering a short sale. We bought at the peak $150,000. My boyfriend lost his job and his new one pays half of what he made. I am entering graduate school and will not be able to work. My lender decreased my interest rate and therefore payments. I have excellent credit. I can take enough student loans to make the mortgage payments but I don’t know if I should. There is no way my house will regain it’s value in the next ten years. Should I go into an additional 65000 of education debt to pay my mortgage or just walk away?
Asked on July 6, 2009 under Real Estate Law, California
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
I am a lawyer in CT and practice in this area of the law. Given the fact that you have great credit it will be hard to make this decision. if you do the short sale, then your credit is deminished for at least 2-3 years or so and it may be harder to buy your next home. If you take out the loans to keep the house, you will have significant debt in loans that you will not be able to get rid of. If you are confident that you will be able to repay the loans, then keep the house as you can always try to rent it out and move into an apartment for the time being worst case scenario.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.