Short Sell?

Question

I'm making my mortgage payment on time and I am in the process of a short sell. I was told that I could walk away without oweing the balance. However, I want to know....would a short sell report on my credit report as a repo and a negative credit score?

Answer 1

I hope you were told by the lender that you could walk away without owing the remaining balance, since this is rather unusual for a lender to do.

If your lender truly agrees to fully cancel your indebtedness in this fashion, it should not appear as a negative on your credit report, since it was a negotiated settlement of a debt to which they agreed.