Posted on: 02nd Nov, 2009 04:54 pm
I have some complicate stuff going on, first my morgage payments are behind and our property is in foreclosure scheduled sale 12-04-09. Applied for a modification but waiting on approval, I want to really just let this house go even inquired about short sale but just scared that if do a short sale how would this affect my score. Also if I do a short sale is it harder to sale. I need help will someone please help me make a decision, P.S. want to buy another home soon.
Hi kwannano,
A short sale would reduce your credit score by 75-100 points. Moreover, you would be responsible for paying the deficient amount resulting from the sale of the property. If you want to get rid of the property, then I think a deed in lieu of foreclosure would be a better option for you. Though it would reduce your credit score by around 250 points, but you won't be responsible for the deficient amount resulting from the sale of the property.
But if you are planning to save the property, then loan modification is the best option for you. You can contact the lender and ask him to speed up the process and let you know whether or not you would get a modification.
A short sale would reduce your credit score by 75-100 points. Moreover, you would be responsible for paying the deficient amount resulting from the sale of the property. If you want to get rid of the property, then I think a deed in lieu of foreclosure would be a better option for you. Though it would reduce your credit score by around 250 points, but you won't be responsible for the deficient amount resulting from the sale of the property.
But if you are planning to save the property, then loan modification is the best option for you. You can contact the lender and ask him to speed up the process and let you know whether or not you would get a modification.