My husband walked out on me 7 months ago and left me to pay a huge mortgage. I am behind with my payments and have now placed the house on the market with a realtor. He started the proceedings to short sell my house. Will that hurt my credit? And how can I buy another house when I won't get any money back from the sale? My lender did not report my lack of payment. Please help!!!
2007-03-12 06:33:14 · 5 answers · asked by Lucky_Star 2 in Business & Finance ➔ Renting & Real Estate
Sorry to hear about your situation. Short selling will affect your credit but there's more to think about here. If you are short selling a house you are close to foreclosure, you should not even be considering buying another home until you land back on your feet. Get out of debt, build up an emergency fund and get your life in order. A house, as you probably know, can be a nightmare if you don't have the financial ability to pay for maintenance or other incidentals. Just talk things slow you you'll be all right, don't rush into another mortgage.
2007-03-12 06:49:14 · answer #1 · answered by Keith C 2 · 0⤊ 0⤋
A short sell will hurt your credit, but it is much better than a foreclosure. Generally, you can make payment arrangements for the left over balance on the home you sold. You want to start speaking to the loss mitigation department on your current mortgage and see what they say. Also, you could roll the unpaid part of the first mortgage into the new homes mortgage. You have to speak with loss mitigation for that. But, you might not be able to purchase a house until you credit score overcomes the short sale. Think about putting the new home in a friends or relatives name.
2007-03-12 06:42:05 · answer #2 · answered by Carrie W 2 · 0⤊ 0⤋
sure, it rather is noted as a Bridge loan. in case you have numerous fairness on your place they are often a good option. The pastime fee is somewhat on the extreme edge -- generally a million.5 to 2 share factors above despite first you will qualify for on the recent place. in spite of the indisputable fact that no money are due for 6 months and you'd be able to commonly pay pastime in basic terms for the subsequent 6 months. The pastime on the deferral era is further directly to the loan stability. the prospect of direction is that your previous place would not sell quickly and you land up at the back of a rock and a tough place with 2 loan money to make.
2016-10-02 00:10:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No it won't hurt your credit but you have to deliver good deed. In other words you must pay any deficit at close. Now yes you can buy based on the 3 C's of lending. Collateral, Capacity to pay & Credit.
I am a mortgage banker in TN & KY
2007-03-12 06:41:41 · answer #4 · answered by golferwhoworks 7 · 0⤊ 0⤋
The short sale will be reported as a charge off on your credit, ruining it. If you are borrowing for your next place, you will only qualify for sub-prime loan at extra high interest rates
2007-03-12 06:39:49 · answer #5 · answered by Robert Novak 1 · 0⤊ 0⤋