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Why countrywide a.k.a bank of america will offer us a short sale instead of a principle reduction?

Posted on: 21st May, 2009 11:29 am
Why countrywide a.k.a bank of america will offer us a short sale instead of a principle reduction?...we are military ,we pay our mortgage on time no late pays, we have orders to go to arizona in November for 3 years. We asked for a principle reduction to save our credit because of the foreclosures in our neighborhood and our house has been for sale about a year in a half now ,we were told that the government have not approved the principle reduction yet, that we can do a short sale, we are still paying our mortgage until we leave, if we do a short sale how much will it affect our credti with a 720 score?
Hi alatrice!

Welcome to forums!

If you agree to a short sale, then your credit score will be lowered by 75-100 points. The short sale will remain as a negative item on your credit score for 7 years.

Feel free to ask if you have further queries.

Sussane
Posted on: 21st May, 2009 08:09 pm
First, thank you Sussane for the welcome and the response. what I do not understand is, why when this plan was made that no one looked out for the military that is and could be affected by the economy. We would not have to settle for a short sale if the military did not station us in Arizona, it is not like we made the decision ourselves not to stay in our home and try to keep our credit intact. This is a government decision why they did not make anything to protect my husband and his family along with other military families in the same situations?
Posted on: 22nd May, 2009 06:48 am
Alatrice sorry to see you in this situation.

Have your talk to your military official and see if they can help you in this situation.
Posted on: 22nd May, 2009 08:02 pm
I always wondered how military personnel moved from state to state frequently. I would like to know how this situation gets resolved, please post your results. Thanks!
Posted on: 26th May, 2009 07:55 am
Hi alatrice/Guest,

It's a controversial issue altogether. Lots of people working in the military are transferred from one place to another and most of them face the same issue. As lots of new plans and programs are coming up, I guess, the government will also look into this issue and take the needful steps. We'll just have to keep our fingers crossed.

Thanks
Posted on: 27th May, 2009 10:08 pm
Sad to see that the goverment bails out guys who did the mistake and do nto even think about people who risk thier life every day.
Posted on: 27th May, 2009 10:18 pm
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