Posted on: 16th Nov, 2011 09:46 pm
i have 2 mortgages. the bank sold off one mortgage to another lender and retained the other one. i have no equity in the house and the mortgage payments are more than my entire monthly salary. i am currently behind in my mortgage payments and i cannot afford to stay in the house. i don't know if i should try to short sale, deed in lieu of foreclosure or what?
If you cannot afford to stay on the property, then it will be better to get rid of it. If you're concerned about your credit, then you should go for the option of short sale. This will lower your credit score by 80-100 points. However, you will be liable for paying the deficient balance to the lender. In case, you don't want to pay off the deficient balance, then you can go for the option of deed in lieu of foreclosure. But it will lower your credit score by 250 points. Now it will be your discretion as to which option you will choose.