Posted on: 19th Apr, 2010 03:13 pm
My two sons are on title for a home together but only one is on the loan. They are now considering doing a short sale on the home because it is upside down. Is it necessary for the son who's name is not on the loan quit claim the home to the other before they start the short sale process in order to prevent credit score issues.
Hi Guest!
Welcome to forums!
The son whose name is not on the mortgage will not have to worry about his credit scores if the property goes for a short sale. As his name is not on the mortgage, his credit scores won't get affected and the lender will not be able to come after him for the balance amount. Thus, there is no need to transfer property. The other son whose name is on the mortgage and the deed, will have to face the negative consequences of a short sale.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The son whose name is not on the mortgage will not have to worry about his credit scores if the property goes for a short sale. As his name is not on the mortgage, his credit scores won't get affected and the lender will not be able to come after him for the balance amount. Thus, there is no need to transfer property. The other son whose name is on the mortgage and the deed, will have to face the negative consequences of a short sale.
Feel free to ask if you've further queries.
Sussane