If I do a "Short Sale" on my investment property, will it affect my credit report in negative way?

Answer 1

I beg to differ with Kate. If you google the question, you should be able to find some really great info. on it.

"When you negotiate a successful short sale, keep in mind that the agreed upon price is payment in full. However, the homeowners may still owe the difference between the mortgage balance and the discounted amount via a “deficiency judgment.”

If granted, this judgment will affect the homeowners and their credit report just as any other judgment. You must get the bank to agree to accept “payment in full without pursuit of any deficiency judgment.”

In addition, you need to explain to the homeowners that the discounted amount (the difference between the mortgage balance and the short sale) may be declared as income on their income tax return by means of a “1099.”

The homeowners should speak with their accountant for advice. Since the homeowners have been in such duress and probably haven’t made much income, a 1099 may not adversely affect them. "

Answer 2

I do short sales for a living. Yes, it shows up as a "charge off" plus whatever mortgage lates you have. However, it's better than having a foreclosure on your credit report.

Regards

Answer 3

Buying and selling investments has no impact on your report unless you have delinquencies or foreclosure involved , relating to loans.
I believe , however , the buy / sell action is irrelevant to credit .