Mailbag: Retiring Mortgages, Staging Homes and Trying Short Sales

"Staging is not decorating. It is turning a home into a product to be sold," one pro explained. (By Elizabeth Razzi -- The Washington Post)

But Jo-Ann Fiscina,a homeowner in North Bethesda, shared my skepticism. "When we sold our house in Chevy Chase 10 years ago, 'staging' was in its nascent form, or so it seemed at the time. Since that time, I have watched the 'profession' establish firm footing in the world of real estate, but I still harbor the same doubts you express about putting pre-sale fix-up money in that basket. The growth there is akin to the expansion of the wedding planning industry which, thank goodness, did not come into its own until after my three children were married."

And some lawyers offered advice about short sales, foreclosures and bankruptcy.

Christopher L. Rogan, a bankruptcy lawyer in Leesburg, wrote: "I suggest that sellers rethink the short-sale option, as often a bankruptcy will still be necessary to clean up the deficiency (the difference between the sale price and the debt) along with other debts incurred while trying to sell the house.

"Under the 2005 revisions to the Bankruptcy Code, debtors are often more likely to qualify for Chapter 7 relief if they still have a mortgage expense. So, borrowers faced with the loss of a home (through a short sale or foreclosure) should evaluate whether a bankruptcy is ultimately going to be necessary and consider filing before the property is lost.

"In some cases, a short sale may still be appropriate, if one can be achieved, as the resulting deficiency will be less than that which is likely to result from a foreclosure. If the borrower has the ability to pay the deficiency and avoid bankruptcy, that may be the best option."

Andrew G. Pizor, a Washington lawyer working for the Connecticut Fair Housing Center, wrote: "I was especially pleased to see you discourage use of for-profit counselors. Some of these companies, along with so-called 'mortgage auditors' and foreclosure rescue scammers do far more harm than good. They are merely profiteering from borrowers' misery." He recommends searching for a counselor certified by the U.S. Department of Housing and Urban Development at http://www.hud.gov.

E-mail Elizabeth Razzi atrazzie@washpost.com.