Posted on: 05th Dec, 2010 02:40 pm
hello,
i started short sale process 11 months ago with chase bank. i was forced to move from a condo my wife and i owned due to job relocation. i have not made a mortgage payment in 11 months. my credit score was 800 and is now down to 670, due to foreclosure status on mortgage. i have been approved for a short sale if i agree to sign promissory note for 16k or bring 8k to closing table. the property is in michigan
i am hoping to salvage my credit as much as possible so i can get mortgage again.
should i agree to short sale agreement or should i save my 16k and let property foreclose?
or do you think deed in lieu of foreclosure is better option
please help
brian
i started short sale process 11 months ago with chase bank. i was forced to move from a condo my wife and i owned due to job relocation. i have not made a mortgage payment in 11 months. my credit score was 800 and is now down to 670, due to foreclosure status on mortgage. i have been approved for a short sale if i agree to sign promissory note for 16k or bring 8k to closing table. the property is in michigan
i am hoping to salvage my credit as much as possible so i can get mortgage again.
should i agree to short sale agreement or should i save my 16k and let property foreclose?
or do you think deed in lieu of foreclosure is better option
please help
brian
Hi ander,
A foreclosure will further reduce your credit score by 250 points whereas a short sale will reduce your score by 80-100 points. In such a situation, it will be a better option to short sale the property. However, in both the cases, you'll be liable for paying the balance amount resulting from the property sale.
A foreclosure will further reduce your credit score by 250 points whereas a short sale will reduce your score by 80-100 points. In such a situation, it will be a better option to short sale the property. However, in both the cases, you'll be liable for paying the balance amount resulting from the property sale.
Hi thank you so much for your feedback. The selling price approved in my shortsale was 77K. However my outstanding balance in my mortgage is 168K. Are you saying I will be liable for the 91K difference between selling price and amount I owe?
Hi ander!
Welcome to forums!
If your state laws does not offer the anti-deficiency clause, then the lender will be able to come after you for the deficient balance resulting from the short sale.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If your state laws does not offer the anti-deficiency clause, then the lender will be able to come after you for the deficient balance resulting from the short sale.
Feel free to ask if you've further queries.
Sussane
Hi Ander,
I guess it depends on who your lender is, We did a short with Wells fargo a year and half ago and we didn't have to pay back any deficient balance nor needed to be reported on our Taxes, Our credit went down about 50 points.
I guess it depends on who your lender is, We did a short with Wells fargo a year and half ago and we didn't have to pay back any deficient balance nor needed to be reported on our Taxes, Our credit went down about 50 points.
Homeowners looking to stop foreclosure are faced with a number of options, one of which is doing a short sale. Some people, depending on their situation, may allow a property to go into foreclosure instead of attempting a short sale.