Posted on: 09th Jun, 2010 10:07 am
I owe 150 to the bank on a house purchased at 164 the tax appraisal on the home is 191. House has been recently appraised at 171. I can bring 20 thousand to close in cash. I am leaving to go back to Law School for 3 years in July. I have 815 credit score. I cannot get an offer on my home. Is it smarter for me to short sell than to spend my 20 thousand that I need for law school? Should I preserve my credit or will it rebound in 3 years. I have no intention of buying a home in the next 10 years.
Welcome jmarshall,
If you want to get rid of the property, then you can apply for a short sale. However, in order to get your short sale request accepted, you need to be delinquent on your mortgage payments and the lender can come after you for the deficient balance resulting from the sale. A short sale will reduce your credit scores by 80-100 points. After a short sale is complete, you can start taking steps to improve your score.
You can check out the given page to know some steps to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
If you want to get rid of the property, then you can apply for a short sale. However, in order to get your short sale request accepted, you need to be delinquent on your mortgage payments and the lender can come after you for the deficient balance resulting from the sale. A short sale will reduce your credit scores by 80-100 points. After a short sale is complete, you can start taking steps to improve your score.
You can check out the given page to know some steps to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
What is the short sale price, roughly? What if I make up the deficient balance in cash? How is it different if I owe LESS than the house is WORTH (by every current low range appraisal tool)?
Is it reccomended I intentionally become delinquent on my mortgage payments? Is it not possible to prove future hardship (loss of income/relocation) without becoming delinquent?
Is it reccomended I intentionally become delinquent on my mortgage payments? Is it not possible to prove future hardship (loss of income/relocation) without becoming delinquent?
Hi jmarshal!
Welcome to forums!
The short sale price will depend upon the area and the value of the property that you presently own. After a property is short sold, you would be liable for the deficient balance. You will have to pay it or else the lender may charge off the loan to a collection agency.
It would be difficult for you to prove hardship without being delinquent on your mortgage payments. Lenders generally do not accept short sale if you're current on your mortgage dues.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The short sale price will depend upon the area and the value of the property that you presently own. After a property is short sold, you would be liable for the deficient balance. You will have to pay it or else the lender may charge off the loan to a collection agency.
It would be difficult for you to prove hardship without being delinquent on your mortgage payments. Lenders generally do not accept short sale if you're current on your mortgage dues.
Feel free to ask if you've further queries.
Sussane