Posted on: 16th Sep, 2010 03:28 pm
I am involved in trying to help my father buy a property and its very likely we will need to try to do a short sale to get the current owners out from under their existing mortgage.
The current owners are being very helpful and have informed us that their bank is very open to the option of a short sale, however they seem to be under the impression that the lower the selling price ends up being, the greater the effect will be on their credit. Basically - the "shorter" the short sale, the worse off they will be credit wise. Is this a valid concern - or will any short sale affect their credit equally regardless of the amount the bank ultimately ends up accepting as a settlement?
Thanks a lot for any advice!
The current owners are being very helpful and have informed us that their bank is very open to the option of a short sale, however they seem to be under the impression that the lower the selling price ends up being, the greater the effect will be on their credit. Basically - the "shorter" the short sale, the worse off they will be credit wise. Is this a valid concern - or will any short sale affect their credit equally regardless of the amount the bank ultimately ends up accepting as a settlement?
Thanks a lot for any advice!
Hi Guest!
Welcome to forums!
If a short sale takes place, it will affect the borrower's credit in a negative way. It will lower the borrower's credit score by 80-100 points. This drop in credit score is irrespective of the fact whether or not the property was sold off for a low sale price.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If a short sale takes place, it will affect the borrower's credit in a negative way. It will lower the borrower's credit score by 80-100 points. This drop in credit score is irrespective of the fact whether or not the property was sold off for a low sale price.
Feel free to ask if you've further queries.
Sussane