Posted on: 18th May, 2011 12:53 pm
Hi, this goes along with my recent statement. I am looking to aquire a loan of about $100,000. Due to recent changes in our life, our credit is not that great, around 590, but currently working on it. The house we are in now is huge, a $2,500 month loan. We want to downsize dramatically because it is only myself, my wife, and my 10 year old son. The house is looking towards a short sale. But even if it is a short sale, we will walk away free and clear. Is there any way we could get a small loan of only $100,000 under these circumstances?
The problem is the short sale, yes you will walk away from the home, but necessarliy clean. If your state allows for defeciency judgment, then you could have a judgment against you for the difference between the sales price of the home and amount owned. Also, when you short sale, any new lender will treat that as a foreclosure, and you would have to wait the 3 years. If you could qualify for both loans now, that would be your only option. Once the short sale is listed on your credit, you cant reverse. Since you dont have equity, you would not be able to rent your home and use that rental income to help qualify for another home. You can either try to purchase now, using both debts against you, short sale and take 3 years to repair your credit and save up some money, or plug away at the high payment. Any thing that you do, that is not a regular sale, then you will be affected trying to purchase again. Good luck
Hi kbgf!
Welcome to forums!
After a short sale, you will be liable for paying the deficient balance resulting from the sale of the property. Immediately after a short sale, you won't be able to qualify for another loan. You will be able to get a mortgage after 2-3 years of a short sale.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
After a short sale, you will be liable for paying the deficient balance resulting from the sale of the property. Immediately after a short sale, you won't be able to qualify for another loan. You will be able to get a mortgage after 2-3 years of a short sale.
Feel free to ask if you've further queries.
Sussane
