My house has been on the market since Jan with very little traffic. Because of the market decline we have no equity in the home and where it is priced now we'll have to bring $10,000 to closing. We are being transferred out of state (military) and close on our home there in 2 weeks. I have not missed a payment but anticipating I cannot make 2 house payments for very long. Should I start looking at short sale before I get behind? We have excellent credit and hate to ruin that. I realize short sale will have a negative impact on that but I cannot let this forced move bring us under completely. What should we do?
2007-05-21 12:00:44 · 2 answers · asked by Christie M 2 in Business & Finance ➔ Renting & Real Estate
A "short sale" is not something that you can just 'do', you have to talk the lender into accepting it, and since you are not behind on payments you may have a hard time talking them into taking a loss until they believe they have no choice. It isn't the short sale that negatively impacts your credit, it's the fact that you are in default when the lender agrees to it.
2007-05-21 12:06:47 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Your chances at getting approved for a short sale are very low. Apparently your income and asset levels were sufficient to allow you to gain approval for two mortgages at the same time. That being the case, you will have a very difficult time convincing Lender No. 1 to take a short sale because you are now similarly indebted to Lender No. 2.
Of course, you can always refuse to make payments and live with the resulting trainwreck which will appear on your credit report. I'd advise sucking it up hard and making those payments, even if it cramps your lifestyle.
2007-05-21 12:20:37 · answer #2 · answered by acermill 7 · 0⤊ 0⤋