Posted on: 28th Nov, 2009 06:08 pm
Hey ya'll,
I have a question that I have not seen before. We have a primary residence and a second home that we have had to start renting out due to husband not working now due to disability and about a 40% cut in my salary (commissioned sales).
We anticipate having to do a short sale on our primary residence and were curious if short sales are done on secondary homes (the house is about 75K upside down). If not and we have to go to foreclosure, what would that do to our credit with a double whammy? Substantially worse than one transaction or moderately worse?
Thank you (great forum, by the way)
Yvonne
I have a question that I have not seen before. We have a primary residence and a second home that we have had to start renting out due to husband not working now due to disability and about a 40% cut in my salary (commissioned sales).
We anticipate having to do a short sale on our primary residence and were curious if short sales are done on secondary homes (the house is about 75K upside down). If not and we have to go to foreclosure, what would that do to our credit with a double whammy? Substantially worse than one transaction or moderately worse?
Thank you (great forum, by the way)
Yvonne
I have a friend and this is what he did. Not the exact situation as you. He had to move out of state for employment. He had just enough money for a down payment on his new house and made just enough to qualify for another mortgage. He then moved and walked away from the old house. This will kill his credit because the first home is now in foreclosure. He said the bank on the first home does not have any claim or lien rights on his new home. He did not want to do this but desperate times required desperate measures. Are your loans on both homes connected, maybe you can walk awy from #2 without impact to #1. I suggest you consult an attorney before you consider this.
Thanks book,
our loans are not connected and the funny thing is, we did consult an attorney who told us to talk to our mortgage company to work something out! Uh yeah...I did that and they only offered a forebearance conditionally which really just delays the inevitable.
I'm curious if things get really tight and we have to walk away from both houses or try for a short sale, will two homes damage our credit twice as bad as doing it to one? Or will it be an incremental difference?
Wow...these times are not fun trying to figure all this out!
our loans are not connected and the funny thing is, we did consult an attorney who told us to talk to our mortgage company to work something out! Uh yeah...I did that and they only offered a forebearance conditionally which really just delays the inevitable.
I'm curious if things get really tight and we have to walk away from both houses or try for a short sale, will two homes damage our credit twice as bad as doing it to one? Or will it be an incremental difference?
Wow...these times are not fun trying to figure all this out!
Hi Yvonne,
If you want to get rid of the property, then it would be a better option to go for a short sale. You would be responsible for the deficient amount resulting from the sale of the property but your credit score would be lowered by 75-100 points. As there are two properties, your credit score would be affected separately for both the houses.
Thanks
If you want to get rid of the property, then it would be a better option to go for a short sale. You would be responsible for the deficient amount resulting from the sale of the property but your credit score would be lowered by 75-100 points. As there are two properties, your credit score would be affected separately for both the houses.
Thanks