I’m Being Sued for More Money than I Owe!

Is a debt from your past coming back to haunt you in the present? Although not ideal, sometimes it happens. Perhaps you weren’t making sound financial decisions at that point in your life and accidentally (or intentionally) ignored some past due notices until they just stopped coming.

It can feel like it’s easier to ignore bills when you don’t have the means to pay them. However, the end result is almost always going to be substantially worse than your original debt.

While it can take some companies awhile to take action on smaller debts, the bad news is that your (once) small-ish debt has had a load of time to compound upon itself, rolling around in interest rates, gathering late fees and potentially even picking up attorney’s fees. If your original lender or credit card company has hired counsel to address getting you to pay up, it is possible for them to tack their attorney’s fees on to the amount owed.

What can I do?

Your credit card company is hoping that you’ll get scared by the big number they’re asking for – as you should. If you receive a summons and complaint that says you owe double, triple or quadruple your original debt amount – now is the time to obtain counsel yourself.

How can I afford an attorney if I can’t even pay my debt?

Working with a New Jersey debt settlement attorney on a matter like this is highly unlikely to cost you thousands of dollars. In all likelihood, the right NJ lawyer will have the required negotiating skills to bring the amount owed down to a much more reasonable number – simply by making a few phone calls and/or sending some letters.

Your attorney can then work to coordinate a payment plan that is manageable for you so that you can pay off the (now much lower) balance. The lender/credit card company will almost always be happy to get some form of payment from you as opposed to nothing.

What will happen if my case goes to court?

If, by chance, your credit card company does not want to settle via your credit repair attorney, New Jersey courts will set up a mediation wherein the same kind of talks will take place. A court appointed mediator will work with you and your attorney, along with counsel for the opposing side, to negotiate a resolution that everyone can agree to.

The bottom line is: if you have been served with a lawsuit to collect a debt in a much higher amount than you originally owed, you’re probably not going to get out of paying at least part of the debt unless you file for bankruptcy. If you have the means to pay back the amount that your lawyer negotiates for you, you should do so in a timely manner so that your credit score doesn’t take an even bigger hit.

On the other hand, if you are completely strapped and cannot imagine even one dollar of your debt (and likely other debts that you owe) being repaid, it is definitely time to consider filing for a NJ bankruptcy. This will wipe out a significant amount of your total debt, leaving you much more financially stable, which will allow you to “start over” with a much cleaner slate.

 

Image: “Breaking into your Savings” by Images Money – licensed under CC 2.0

How to Defend Yourself Against a NJ Medical Debt Lawsuit

If you owe a hospital or private physician a large amount of medical debt and have been pursued by the hospital or a debt collector they’ve hired, there’s a strong possibility that the collection agency or hospital could decide to sue you for the remainder of the debt.

Don’t panic! We have compiled the steps and strategies that will help guide you if you are served with a lawsuit for your medical debt.

One of the most common mistakes debtors make when they are sued is not responding to the notice, which arrives as a “summons and complaint.” Debtors will often assume that if they do not have the money to pay the debt that they can just toss that summons and complaint in the trash and forget it. However, there are many avenues that are still available to you, even if you cannot currently pay the bill.

If you fail to respond to the summons and complaint, the collector will be awarded a default judgment against you. This will give them the power to pursue collection in more aggressive ways, including garnishing your wages or taking money directly from your bank account. Worse still, they’ll be able to tack on attorney’s fees, court costs, and potentially even accrued interest.

Now that you know you must respond to the summons and complaint, you’ll need to learn how to do so. The one thing you must NOT do is respond by simply saying you cannot pay the bills you owe. That’s like a defense attorney deciding to defend their client by announcing that the prosecution is correct! “Your honor, my client is guilty just like the prosecution says.”

With the help of your attorney, you’ll file an Appearance form before the Return Date listed on your summons and complaint. If you fail to do so, remember, you will be found liable by default. Your attorney will be able to fill out the paperwork for you, or guide you in doing so properly.

When you meet with your NJ debt resolution attorney, he will be able to advise you on the best defense against the lawsuit that was filed. The legal advice you receive will be tailored to your unique case details, with the end goal of proving that you are not responsible for the debt. Alternatively, your attorney may work to reduce the amount of medical debt you’ll have to repay over time.

Your attorney will demand that the collection agency or hospital prove that you owe the amount they claim. Experienced legal counsel knows what documents to demand in court from the opposing side. A strong defense straight out of the gate will often prompt the collection agency or hospital to begin settlement proceedings and reach a mutually satisfactory arrangement.

While it is possible to defend yourself in court against a medical debt lawsuit, you should strongly consider working with an attorney who will be able to take your individual situation into account and offer you the very best defense tailored to your needs. Only an experienced attorney who has complete access to your case will be able to do so.  You deserve the best assistance in your defense so that you can live out a peaceful future, which ideally does not include medical debt hanging over your head.
Image: “Hospital Municipal de Chiconcuac” by Presidenciamx – licensed under CC 2.0

Do You Understand Your Mortgage’s Fine Print?

Now that the housing/mortgage crisis has begun to level out in most parts of the country, it has once again become a buyer’s market, and this time in a much more reasonable manner. Interest rates are good, but not unbelievably good like they were leading up to the 2007 crisis. As we all know by now: if something seems too good to be true, it probably is.

Just because we’re looking at the US Financial Crisis (2007-2008) in the rear view mirror doesn’t mean that getting a mortgage loan today comes without risks, though. In fact, there is a lot to be learned from the mistakes made a decade ago.

In order to ensure that you aren’t getting yourself into something you can’t handle or something that will change over time (and not in your favor) – you simply MUST have a complete and solid understanding of everything contained in your mortgage agreement.

To most people, this probably sounds like common sense. But have you ever looked at a real, live mortgage agreement? They are very lengthy with a lot of industry jargon that can quickly spin you into a confused puddle on the floor.

Your best bet is to find a New Jersey lawyer with real estate knowledge. Make sure you trust him and his team implicitly – in all likelihood a paralegal may also work with you on real estate matters, so be sure to meet everyone in the office who will be helping you understand your documents.

Questions to have ready for your attorney and/or paralegal include:

  • Is my rate variable or fixed? If the answer is variable, find out the lowest fixed rate that you’ll be able to lock in your loan.
  • Will there be penalties if I have to break my mortgage contract?
  • Am I required to pay mortgage insurance? If so, find out why. You may be able to work with a different lender who will not require mortgage insurance. If mortgage insurance is non-negotiable, be sure to ask how long you’ll be paying it, because it can often be a significant sum.
  • How long does my mortgage loan last? Will different terms lower my monthly payment?
  • What fees am I required to pay up front and are there any fees that were tossed into the total loan amount?
  • Do I have a balloon payment clause?
  • What are mortgage “points?”
  • Is a down payment required?
  • What is my monthly payment?
  • What is my credit score? We left this question until the end for a reason. We wanted to leave you with it on your mind. Finding out your credit score should be one of the first things you do even before you begin applying for mortgage pre-approval.

Your credit score will have a significant impact on the interest rate you will be offered by lenders. If your score is less than desirable, or even “fair”, talk to your NJ real estate attorney and paralegal about waiting to buy a home until you can boost your score into the “good” or “excellent” range. Work with your trusted legal team to raise your credit score. They will also be able to guide you in determining the best time to jump into the real estate market so that you qualify for the best loan options. This will save you a lot of money throughout the length of your mortgage.

 

 

Images: “Chocolates 1” and “Chocolates 2” by Windell Oskay – licensed under CC 2.0

Filing for Bankruptcy as a New Jersey Business Owner

Starting and running a small business is a very challenging endeavor, even for the most business-savvy entrepreneur. In fact, most entrepreneurs start a number of businesses before they find one that takes off. Sometimes, a business venture simply doesn’t pan out, no matter how much effort you’ve put into it.

If you’ve started struggling to pay your business lease every month – now’s the time to really start considering your options before problems begin to surface in your personal finances as well.

When your business debts have become more difficult to manage but not out of control, you may be able to salvage things with some refinancing and debt negotiation. On the other hand, if your debts are virtually unmanageable and you see no light at the end of the tunnel, filing for bankruptcy may truly be your best choice.

As a business owner, should I file for chapter 7 or chapter 13 bankruptcy?

Whether you’re filing for bankruptcy on your own or as a business, you can file for either chapter 7 or chapter 13. In both cases, you’ll have to meet certain qualifications in order to file. For example, the only instance in which you’re permitted to file chapter 13 in New Jersey as a business is if you are a sole proprietor. Corporations, partnerships and LLCs (Limited Liability Company) are not eligible for chapter 13 bankruptcy.

You can, however, file for a personal chapter 13 bankruptcy at this time, even if your business doesn’t qualify for chapter 13. In doing so, you’ll be able to keep the business assets while you repay debts through what is called a reorganization plan. This is the best bet if you want to continue running the business after you file for bankruptcy. This option may be appropriate if you made some mistakes along the way that you have now remedied, making it more likely that the business will succeed. If you don’t meet the requirements to file for chapter 13, your business may qualify for chapter 11.

Any business entity has the right to file for chapter 7 bankruptcy. If you the sole owner of the business, you will also be required to file for a personal chapter 7 bankruptcy simultaneously. This is due to the fact that sole proprietors are legally the same entity as their business. Additionally, a business that files for chapter 7 will not receive a discharge of their debts.

Again, if you wish to continue operating the business after the bankruptcy, you’ll want to file for a personal chapter 7. This will wipe out your liability for said business’s debts, which may allow you to get a better hold on things and start over with less debt overall.

If your ultimate goal is to close up shop and move on to greener pastures and your company is a partnership, LLC, or corporation, you can file for chapter 7 as a company. In doing so, you will essentially turn over all of your business assets to the bankruptcy trustee to be liquidated. This means all of your business property will be sold in order to pay back the debts you accrued that you couldn’t repay.

For more information on filing for bankruptcy as a business, request your free case evaluation at the bottom of our website’s home page. Veitengruber Law can help you determine which NJ bankruptcy is right for your unique situation.

 

Image: “Store Closed” by Chris Chan – licensed under CC 2.0

Can I Disinherit My Child in My NJ Will?

In New Jersey, as in most other states, a parent is permitted to legally disinherit a child, provided this intention is clearly stated in a valid will. What follows are the steps you must take to ensure that your wishes are fulfilled with regards to your estate, as well as a few caveats you should be aware of.
In New Jersey, if a person dies without having created a will, any property not disposed of in life will be governed by intestate succession rules. These rules are laid out in N.J.S.3B:5-3 through N.J.S.3B:5-14.

Can I choose to simply leave my child out of my will?
Though it might seem to be the most tactful way to handle this delicate matter, you must clearly state that you wish to disinherit your child in a valid will. Otherwise, the child will be protected by Section 3B:5-16 of New Jersey’s statutes, which protects children from accidentally being left out of a parent’s will.

Include a clause that mentions your child by their full name; this will attest to your having been of a sound mind when the will was drafted. You may keep it simple, saying only, “I have intentionally made no provision for my youngest child, John Doe.”

Do I have to state the reason I wish to disinherit my child?

The reason for disinheritance does not need to be included in your will, though whether or not to do so depends on the circumstances. If no ill will is intended, and there is no acrimony in the parent-child relationship, it is probably advisable to include a clause saying so. “I have adequately provided for my beloved son, John Doe, throughout his life; he is now a successful, independent man. I have therefore made no provision for him.”
There may, however, be good reason to remain silent on the cause for disinheritance. If including the motivation could give the child ammunition for challenging the will, or questioning your state of mind, it would be prudent to refrain from doing so. For similar reasons, it is advised that parents do not speak harshly of their child in a will. The disinheritance is most likely an adequately sharp gesture; there is no need to further attack the child after you have passed away.

Keep in mind that a disinherited child will likely attempt to contest the will. However, if you’ve followed the advice laid out here, your assets will be protected.
The Takeaway:

Here are the steps you must follow to protect your assets:

1. You must create a legally binding will.

2. Update this will any time there is a change in the family: birth, marriage, adoption, or death.

3. Clearly state your intention to disinherit your child in your NJ will, and use your child’s full name when you do so.

4. Include the reason if it will help your child feel more positively about the omission, but exclude it if it will give a hostile child more ammunition to contest your will.
Image: “footsteps” by Catrin Austin – licensed under CC 2.0

The Best Tips for Paying off Student Loans Quickly

At the time you applied for and were granted a federal student loan, there’s very little chance that you were thinking about how long it would take you to pay it back. We’re all a bit naive and wet behind the ears when just starting our college studies. Buoyed by the prospect of a “well paying job” after your time at university, you, like many others, most likely figured that paying back your student loan debt would be a piece of cake.

As we all know, student loans are a whole lot less fun after college ends. No one likes the harsh reality of knowing that a large portion of your (newly acquired) paychecks will go toward paying back your student loans. Real life take home pay is usually a lot less than you thought it would be, and subtracting even more money from your net income can feel almost physically painful.

On top of how depressing it can be to fully realize just how much you owe, it can feel like you’ll be paying for your student loans forever. However, there are things you can do to make sure that feeling doesn’t become your reality.

Stop deferment as soon as possible

As a general rule, most student loans, both federal and private, will continue to accrue interest while in deferment. This means the longer you put them off, the more you’re going to owe.

Avoid income-based repayment plans

Also known as ‘pay as you earn’ or ‘income contingent’ plans, these repayment methods are geared toward college graduates who can demonstrate at least a partial financial hardship. In theory, limiting how much borrowers have to repay each month based on how much money they’re earning might sound like a good idea. The problem with dramatically lowering your monthly loan payments again lies in the staggering amount of interest that will be tacked onto the total amount due.

Be aware of income taxes if considering loan forgiveness programs

There are currently a number of federal and New Jersey loan forgiveness programs available for borrowers who have made a set number of payments over a given time period (usually 10, 20 or 25 years). While just knowing that the remainder of your loan will eventually be forgiven can be a light at the end of a tunnel, you may have to pay income tax on the amount that is forgiven.

If you’ve deferred your loan several times and then paid the lowest payments possible via income-based repayment, the interest will have been compounding for a long time. That interest will be added to the remaining balance, which may be a significant sum by the time you qualify for forgiveness. While you will be able to celebrate the debt forgiveness, you’ll still need to foot the hefty NJ income tax bill.

Refinance and consolidate your student loans

One of the best steps to take when trying to get a handle on your student loan debt is to lower your interest rate. You should first consolidate (combine) any loans that are eligible for refinancing. If your original student loan interest rates were high, you’ll save a lot of money over the course of your repayment plan by refinancing to get a lower rate. This can also shorten the length of time required for you to pay back your loans and, in turn, lower the amount of income taxes you’ll owe on any remaining balance if you qualify for forgiveness.

Earmark your yearly tax refund for student loan repayment

Each time you receive extra money, whether from your tax refund, a lawsuit settlement, an inheritance, etc., resist the urge to spend it frivolously and instead apply as much of the total windfall to your student loan balance. You can do the same every time you receive a raise at work, too. Set aside the extra income and pay that much above and beyond your monthly minimum loan payment.

Look for employment opportunities that offer loan forgiveness

The Public Service Loan Forgiveness Program forgives student loan debt in teaching and certain public and nonprofit jobs. You’ll have to meet a whole host of requirements in order to have your loans forgiven through your job, but it is something extremely well worth looking into.

In addition to the above strategies to get out of student loan debt quickly, you should consistently re-work your budget so that you can trim as much excess spending as possible. This will allow you to put more of your income toward repaying your debts faster. Your budget will only be stilted temporarily – so remind yourself that the end justifies the means.

 

Image: “Calculator and Money” by Reyner Media – licensed under CC by 2.0

Asset Planning for Seniors in New Jersey

Seniors today are remaining spry, exceedingly physically fit, and overtly healthier than our predecessors of decades and centuries past. Although extended life expectancies mean more time to make memories with family members and loved ones, they can also mean that your finances have the potential to expire before you do.

While you may have created an estate plan in your 30s or 40s, it is important to reevaluate the details and all components of that plan if/when you live so long that parts of your plan become null, void, irrelevant or outdated.

At Veitengruber Law, we can provide you with long-term planning guidance for all stages of your life. Even if your current estate plan (Last Will and Testament) was drafted by someone other than our firm, we are more than happy to help you protect your assets.

Medicaid rules are numerous and complex. As you approach age 65 (or if you are currently receiving SSDI and are younger than age 65), we will make sure that you understand all of the rules and eligibility requirements.

Medicaid is associated with something called the “five-year look back period,” which can often be confusing and problematic without the help of an experienced New Jersey asset protection attorney. Although we cannot predict the future (yet!), we do have extensive experience in all of the necessary legal areas that relate to the five-year look back period. These areas include: real estate law, foreclosure law, estate planning and credit repair.

You have undoubtedly worked for many years to support your family and to develop a savings/retirement plan that is very important to you. Whether or not your finances will be enough to support you with an extended life expectancy is something we can help you plan for.

As you age, you may need to address potential for long-term care. While this certainly isn’t something that anyone wishes to contemplate, the necessity for nursing home care is a reality as you age. This need may double if your spouse is also still living. We will help you estimate your potential longevity based on your family history and your individual health history in order to come up with the best plan to protect your assets in the event that long-term care is in your future.

If your original estate plan was completed several decades ago, you may need to revisit the designee for executor of your estate. It is possible that your original designee is no longer living, is in poor health, or is no longer part of your life due to divorce, relocation, death, or other circumstances.

In addition to reviewing your estate executor, we will help you to re-evaluate the beneficiaries named in your will. We will also help you assess all components of your estate plan (and determine if they need to be updated based on your current health and that of your spouse) including: your living will, advanced medical directive, power of attorney, your will and any trusts that you have set up.

To find out how we can protect your property and other assets from potential future events, sit down with our professional asset protection team today for a free consultation.

 

Image: “Application Denied” by GotCredit – licensed under CC by 2.0

Can I be Evicted Due to my Roommate’s Poor Credit?

Moving in with a roommate can be a great way to split expenses – both rent and utilities. It can also be an extremely fun time in your life as you venture out on your own and begin to explore the world as an adult.

Naturally, deciding to live with someone, whether in your early 20s or later in life, is a big decision and one that must be taken seriously. It’s in your best interest to make sure that the person you choose to live with is trustworthy and easy to get along with. Failure to take the time to find a roommate who meets these criteria can lead to a very miserable living situation.

However, the single most important trait to look for in a potential roommate is financially responsibility. The following “red flags” indicate a deficiency in the money department and should give you significant pause in selecting your cohabitant:

  • Poor credit score (under 620)
  • History of being evicted for non-payment of rent or utilities
  • Frequent moves from one rental to another – This indicates that they may be more likely to break the lease they sign with you.
  • Tells “horror” stories about all past roommates – The whole “it’s not me, it’s them” scenario – if it keeps repeating itself in someone’s life, this is probably not a person you want to live with.
  • Poor references – Ask potential roommates if you can get in touch with someone they used to live with. Today, this can be as simple as a Facebook introduction and a five minute online chat. Look for answers about paying rent, utilities and security deposits as well as paying for any damages that occurred during the length of their lease.
  • Doesn’t hold a steady job or is only employed part-time – Make sure that they pull in more than enough income to pay their portion of the monthly bills.
  • Inability to put down a deposit

If you plan to apply for a joint lease once you find the right roommate, the property owner (landlord) will almost certainly check both of your credit scores. Even if you have a sparkling credit history and a high score, a landlord can decide not to rent to you if your roommate has dings on their credit report.

Typically, landlords won’t turn away potential renters who only have a few dings in their credit history, but if your roommate is saddled with a significant amount of debt, their credit score has likely suffered because of it.

Perhaps you already have an apartment rental and you want to take on a roommate without adding their name to the lease. Depending on the language of your specific lease agreement, you may be required to add any official occupants’ names to the lease. If this is the case, your new roommate’s credit score can prevent them from joining you in your rental.

Knowing that your possible bunkmate has a dubious financial history, you may be tempted to lie by omission and have them “move in” without officially telling your landlord. While this may temporarily avoid a credit check, it may end in disaster if your landlord discovers your covert roommate. If this happens, you and your undisclosed roommate will likely be evicted for failure to follow the rules set out in the lease agreement.

If you feel that you have been evicted unjustly, you should make yourself aware of your rights as a New Jersey tenant.

 

Image: “Moving Day Boxes” by Nicolas Huk – licensed under CC by 2.0

Should I File for Bankruptcy Before or After my Medical Procedure?

If you plan to file for bankruptcy and you also have plans to undergo a medical procedure, you will most likely benefit from delaying your filing until after you have had your procedure. Bankruptcy only discharges debt incurred prior to filing; if you first file for bankruptcy and then add medical bills incurred at a later date, those medical bills will not be covered by your existing bankruptcy agreement, even if you are unable to pay your medical bills.

Medical debt is eligible for forgiveness under both Chapter 7 and Chapter 13 bankruptcies, which are the two most common types of individual bankruptcy filings. Chapter 7 bankruptcy is a complete forgiveness of debt, whereas Chapter 13 bankruptcy includes a plan for partial repayment of the debt and forgiveness of the remainder. Which type of filing is best for you depends on your income, amount of debt, and types (and the value of) assets you have in your possession.

It is generally inadvisable to generate debt with the intention of having it forgiven through bankruptcy; it can be determined that the additional charges were incurred fraudulently, and such debt will be exempt from the bankruptcy agreement. If you’re about to petition for bankruptcy, it would be unwise to go on a shopping spree or take off on a blowout Vegas vacation, for example. However, medical bills are not subject to this type of scrutiny. There’s no cap or limit on how much medical debt can be forgiven in a bankruptcy.

There is, however, a limit on how often one can file for bankruptcy. The number of years varies, depending on the type of bankruptcy filing and how the debt was discharged. If you have previously had debt discharged in a Chapter 7 filing, you must wait eight years from the date you filed for that bankruptcy before you can qualify to file for another Chapter 7 bankruptcy. If you filed a Chapter 7 and now wish to file for a Chapter 13, there must be at least four years between your Chapter 7 date of filing and your new Chapter 13 case if you are looking to discharge more debt.

These are just a few examples, but as you can see, no type of bankruptcy filing can be arranged back-to-back to cover new debts, medical or otherwise. This means that if you file for bankruptcy, then incur more medical debt, you’ll be saddled with it until you can pay it, or until enough years have passed that you can qualify to file for an additional bankruptcy discharge.

You will have the option of filing for a Chapter 13 bankruptcy before four years have passed since your Chapter 7 discharge, but only if you are looking to reorganize your remaining debts. These remaining debts cannot be discharged for another four years.

Finally, if you are currently receiving ongoing medical care that will be resolved in a matter of months, it is most likely advisable to wait until your course of treatment is complete before filing for bankruptcy. The debts incurred during your treatment can all be included in your bankruptcy filing, and will be eligible for complete forgiveness.

 

Image: “Medical/Surgical Operative Photography” by Phalinn Ooi – licensed under CC by 2.0

Purchasing a New Jersey Home from a Bankrupt Seller

In today’s housing market, there are still a significant number of homeowners who are in danger of foreclosure. These homeowners usually owe more than their home is currently worth, so they are said to be “upside down” or “underwater.” If they are unable to refinance, and cannot keep up with their payments, they will be foreclosed upon, and are likely to declare bankruptcy at that point.

Should you pursue a short sale on a home that is awaiting foreclosure?

If you already own a home, are pre-approved financially, have plenty of available cash, and at least several months to spend devoted to the complicated process that is a short sale on a foreclosed home, only to have the seller declare bankruptcy and possibly even cancel the whole thing, then yes, a foreclosure might be the right gamble for you.

Beware, though, because as stated, it is highly likely that the seller will declare bankruptcy before the sale is completed, greatly reducing the likelihood that a short sale will close. Short sales rarely yield substantial profits for the seller, so the seller was likely pursuing a short sale in order to reduce the damage to their credit that would result from a foreclosure. However, if they’ve decided to go ahead and file for bankruptcy, the negative effect it will have on their credit is likely to overshadow any benefit from the short sale.

If they were to continue with the short sale despite having filed for bankruptcy, the seller could actually be negatively affected. Their filing for bankruptcy places their belongings, including their house, into a bankruptcy estate, so they don’t have the power to close a short sale easily. If the owner is determined to complete the short sale–normally against the recommendation of their bankruptcy attorney–they will need to pay said attorney an extra fee to pursue permission from the court.

If they obtain permission to close on the short sale, the owner will need to move out of the home much more quickly than if they were to wait out their bankruptcy proceedings. The only potential benefit to the owner comes from the peace of mind that may result from having avoided foreclosure.

With all these complications, it may seem like it’s not worth it to pursue short sales in foreclosure situations at all. However, there are a number of benefits that might be quite appealing: competitive pricing, smaller down payment and closing cost, and a shorter escrow period, to name a few major advantages.

So, if you are going to attempt to purchase a house that has been foreclosed upon, or a house that is in bankruptcy court, don’t go it alone. You will need the expertise and guidance of an experienced bankruptcy attorney. Your real estate agent will be happy to help you find advantageous listings, but consult with a bankruptcy attorney to have help navigating the complicated process to follow. A real estate agent is NOT an attorney, and can in no way fill that role.

Never skip inspections! They may be even more necessary in a short sale situation, but never less so. A 2011 survey conducted by Harris Interactive reported that 72 percent of U.S. homeowners agree the home inspection they had before they purchased their current home helped them avoid potential problems; 64 percent of respondents reported that their home inspection saved them money.

While it is a bit of a gamble to invest in an inspection when you don’t yet have signed contracts, it’s a much bigger gamble to sign papers on a home you haven’t had inspected. If a homeowner didn’t have the money to pay their mortgage, it’s unlikely that they’ve been able to keep up with regular maintenance. If you can’t arrange an inspection, and you don’t have hundreds of thousands of dollars to spend on potential repairs, don’t close the deal on a property, no matter how enticing the price tag.

The takeaway: if you have the time and money to spend on a home that may never be yours, and you find a house that is listed at a price that might make it all well worth the hassle, then take your attorney with you–and buckle up for a wild ride!

Image: “Mortgage Rates” by Mark Moz – licensed under CC by 2.0