You may combine these actions. Bankruptcy may be a short term move to allow you time to sell, if your lender won’t delay the foreclosure and you have equity in the home. Working with the lender is frequently combined with a sale and working with the lender is essential to a short sale.
In some situations, a bankruptcy and a refinance may even be combined. If your current loan is particularly bad, you have some equity, stay current on your home loan and unload other debts in bankruptcy, you may be able to refinance soon after a bankruptcy.
