Posted on: 10th May, 2010 07:00 pm
Hi,
My wife and I are getting a divorce and I am being "awarded" the house in the decree. I don't think I will qualify to assume the loan and we both need to get out from under the house. She is living with family and is driving an hour one way to work as am I. We both need to get out of this mortgage and move on to rent closer to work. Is there anyway we can do a short sale while both on the mortgage even if we have been current on our payments the entire length of our mortgage? What kind of hit does it take on your credit if you stay current on payments and just explain to the bank that I am losing one half of our income and I cannot afford the home once my wife stops helping me pay. Also, what kind of tax ramifications come from doing a short sale? Thank you very much.
My wife and I are getting a divorce and I am being "awarded" the house in the decree. I don't think I will qualify to assume the loan and we both need to get out from under the house. She is living with family and is driving an hour one way to work as am I. We both need to get out of this mortgage and move on to rent closer to work. Is there anyway we can do a short sale while both on the mortgage even if we have been current on our payments the entire length of our mortgage? What kind of hit does it take on your credit if you stay current on payments and just explain to the bank that I am losing one half of our income and I cannot afford the home once my wife stops helping me pay. Also, what kind of tax ramifications come from doing a short sale? Thank you very much.
Hi Guest!
Welcome to forums!
Generally, the lenders accept a short sale only if you are delinquent on your mortgage payments. However, you should contact your lender and apply for a short sale informing him about your situation. It would be the lender's discretion whether he would accept your request. It will lower your credit score by 75-100 points. You would be responsible for paying the deficient balance resulting from the sale of the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Generally, the lenders accept a short sale only if you are delinquent on your mortgage payments. However, you should contact your lender and apply for a short sale informing him about your situation. It would be the lender's discretion whether he would accept your request. It will lower your credit score by 75-100 points. You would be responsible for paying the deficient balance resulting from the sale of the property.
Feel free to ask if you've further queries.
Sussane