Posted on: 18th Apr, 2010 11:19 am
my husband holds the loan on our house . We have been requesting a loan modification and the bank has told us the investor of the loan is not doing mods. My husband was out of work for 7 mos. so we fell behind and are waiting for a loan mod. We can afford a loan mod now as he is employed again, but the bank is not giving us a loan mod. Can we do a short sale? could i buy the house as I have goods credit, but my name is on the deed?
Hi peeeech,
As you're unable to make your monthly payments on time, it would be a good option to short sale the property. However, there are negative effects of a short sale. If your name is on the mortgage, then a short sale will lower your score by 80-100 points and you would be responsible for the deficient balance resulting from the sale of the property. Also, you won't be able to buy a property immediately after a short sale. You'll have to wait for 2-3 years after the sale.
As you're unable to make your monthly payments on time, it would be a good option to short sale the property. However, there are negative effects of a short sale. If your name is on the mortgage, then a short sale will lower your score by 80-100 points and you would be responsible for the deficient balance resulting from the sale of the property. Also, you won't be able to buy a property immediately after a short sale. You'll have to wait for 2-3 years after the sale.