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Payments on condo for short sale

Posted on: 09th Nov, 2010 11:38 am
Hi,

We have a condo owned by my wife on the market for a couple months and have had almost no interest. We have dropped the price to just above short sell territory and have now concluded that we will have to short sell the place in order to get rid of it. The condo is in California.

The condo is in my wife's name only. I feel with the level of interest we have had that the condo is unlikely to sell for months (let alone how long it would take the bank to approve the short sale). We both recently bought cars and do not expect to buy another house for 5 years or so. We are thinking that we should stop making the mortgage payments even though it will negatively affect my wife's credit. The money we would save seems more valuable than the credit rating at this point in our lives.

Does this reasoning make sense?
Hi del,

The lender will consider a short sale of the property if you're delinquent on your mortgage payments. If you are not bothered about your credit score, you can go for it and get rid of the property.

Thanks
Posted on: 09th Nov, 2010 11:37 pm
My advice is to continue making payments you can try to do a deed in lieu first before you ruin your credit. Usually if the house is on the market for a while and it is not selling the lender maybe more likely to just take the house back. IF you stop making payments you risk going into foreclosure and having a huge negative impact on your credit. Your score will drop on average 60 points every 30 day late you have.

Try a deed in lieu with your lender first before ruining your credit.

Good luck!!
Posted on: 19th Nov, 2010 08:15 am
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