Posted on: 09th Dec, 2009 09:39 am
All,
So I'm moving because of work and I need to put my house on the market. I'm going to lose about 20K but don't have enough cash on hand to pay for this different. I've been told about a Short Sale option but am scared about the effects it will have on my credit rating.
I don't plan on missing a mortgage payment until the house sells so I'm not going into foreclosure or anything like that. I have my two loans (80/20) through Bank of America. When I called them to discuss this they said it won't hurt my credit at all. They did say about the 1099 form which is ok and a lot better then the 20k that I would owe them.
Am I missing something, it seems to good to be true??
Thanks!
So I'm moving because of work and I need to put my house on the market. I'm going to lose about 20K but don't have enough cash on hand to pay for this different. I've been told about a Short Sale option but am scared about the effects it will have on my credit rating.
I don't plan on missing a mortgage payment until the house sells so I'm not going into foreclosure or anything like that. I have my two loans (80/20) through Bank of America. When I called them to discuss this they said it won't hurt my credit at all. They did say about the 1099 form which is ok and a lot better then the 20k that I would owe them.
Am I missing something, it seems to good to be true??
Thanks!
>>they said it won't hurt my credit at all.
They're wrong. A short sale will hurt your credit.
They're wrong. A short sale will hurt your credit.
Hi ryanbleam!
Welcome to forums!
As far as I know, if you go for a short sale, it will lower your credit by 75-100 points. Apart from this, you may have to pay the deficient amount resulting from the sale of the property. If the lender forgives it, then depending upon your state laws, you may or may not have to pay the taxes on the forgiven amount.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, if you go for a short sale, it will lower your credit by 75-100 points. Apart from this, you may have to pay the deficient amount resulting from the sale of the property. If the lender forgives it, then depending upon your state laws, you may or may not have to pay the taxes on the forgiven amount.
Feel free to ask if you've further queries.
Sussane
