Comments on: How Will A Short Sale Affect My Credit? http://www.debtkid.com/how-will-a-short-sale-affect-my-credit Get Out of Debt @ DebtKid.com Sun, 21 Mar 2010 04:33:43 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Fanny http://www.debtkid.com/how-will-a-short-sale-affect-my-credit/comment-page-3#comment-24281 Fanny Sun, 28 Feb 2010 01:03:42 +0000 http://www.debtkid.com/how-will-a-short-sale-affect-my-credit#comment-24281 My fiancee and i were talking the other night about where we want to live after marrying and he told me he would probably go for a short sale. What happens if i marry him before he does that? Would that affect my credit??? Thanks :) My fiancee and i were talking the other night about where we want to live after marrying and he told me he would probably go for a short sale. What happens if i marry him before he does that? Would that affect my credit???
Thanks :)

]]> By: nate http://www.debtkid.com/how-will-a-short-sale-affect-my-credit/comment-page-3#comment-22129 nate Fri, 20 Nov 2009 05:56:20 +0000 http://www.debtkid.com/how-will-a-short-sale-affect-my-credit#comment-22129 Hi, this is some good info here. Thank you Dean for your responses. My wife and I currently own a condo and owe 338k in southern CA. The current value has it at about 250-260k. My wife lost her job (we are both teachers) and without unemployment I don't make enough to cover all of our bills mortgage included. We are thinking of a short sale. I have spent years building excellent credit, I am at 819 fico score. But to be honest the prospect of being 80k in debt on a condo that we soon cant afford seems worse than losing some credit points. My credit will rebuild quicker than the equity in our home. My main question is three parts: 1. I own an investment property in Florida that still has equity. What would happen to that in a short sale? Should I try to move that? Possibly get my parents involved and sign it over to them? That is costing me about $360 per month to hold on to that. 2. We have about 20k in savings that we were saving for a downpayment on a new home or to use for emergencies. Would the bank go after that? Would that entice them to allow us to do a short sale? I would hate to lose that money. Thanks in advance for advice. Hi, this is some good info here. Thank you Dean for your responses. My wife and I currently own a condo and owe 338k in southern CA. The current value has it at about 250-260k. My wife lost her job (we are both teachers) and without unemployment I don’t make enough to cover all of our bills mortgage included. We are thinking of a short sale. I have spent years building excellent credit, I am at 819 fico score. But to be honest the prospect of being 80k in debt on a condo that we soon cant afford seems worse than losing some credit points. My credit will rebuild quicker than the equity in our home.

My main question is three parts:
1. I own an investment property in Florida that still has equity. What would happen to that in a short sale? Should I try to move that? Possibly get my parents involved and sign it over to them? That is costing me about $360 per month to hold on to that.
2. We have about 20k in savings that we were saving for a downpayment on a new home or to use for emergencies. Would the bank go after that? Would that entice them to allow us to do a short sale? I would hate to lose that money.

Thanks in advance for advice.

]]> By: Will http://www.debtkid.com/how-will-a-short-sale-affect-my-credit/comment-page-3#comment-22077 Will Wed, 18 Nov 2009 00:18:01 +0000 http://www.debtkid.com/how-will-a-short-sale-affect-my-credit#comment-22077 I live in California and did a chapter 7 bankruptcy in Oct 2008 which was discharged Feb 1, 2009. I listed my only real property in the bankruptcy, my homsteaded principal residence. I owe about $120,000 on the property which is currently valued at $90,000. The loan was serviced by Washington Mutual and is currently serviced by Chase. I have stayed in my residence and continued to make my payments. After the bankruptcy my credit score went down to 645. I was told I couldn't get another federally insured loan (or any loan) until Feb 2011. The property is no longer listed on my credit report. I would like to buy another residence at a REASONABLE price at that time. The question is : what are my rights? If I don't make my payments do they even need to foreclose or would this just be a formality? Under these circumstances would a short sale even be appropriate since the $120,000 debt was discharged in the bankruptcy and a reaffirmation agreement was never signed? Does anyone have any ideas.....HELP!! I live in California and did a chapter 7 bankruptcy in Oct 2008 which was discharged Feb 1, 2009. I listed my only real property in the bankruptcy, my homsteaded principal residence. I owe about $120,000 on the property which is currently valued at $90,000. The loan was serviced by Washington Mutual and is currently serviced by Chase. I have stayed in my residence and continued to make my payments. After the bankruptcy my credit score went down to 645. I was told I couldn’t get another federally insured loan (or any loan) until Feb 2011. The property is no longer listed on my credit report. I would like to buy another residence at a REASONABLE price at that time. The question is : what are my rights? If I don’t make my payments do they even need to foreclose or would this just be a formality? Under these circumstances would a short sale even be appropriate since the $120,000 debt was discharged in the bankruptcy and a reaffirmation agreement was never signed? Does anyone have any ideas…..HELP!!

]]> By: Nicole http://www.debtkid.com/how-will-a-short-sale-affect-my-credit/comment-page-3#comment-22027 Nicole Sat, 14 Nov 2009 01:25:28 +0000 http://www.debtkid.com/how-will-a-short-sale-affect-my-credit#comment-22027 I need some advice on a rental property that i have. We lose 300 a month on it and we don't know what to do with it. It is in a really bad area and a bad school district. We moved here from new york and did not know what we were getting ourselves into. We just bought a new house. Any ideas that will not kill my credit??? I need some advice on a rental property that i have. We lose 300 a month on it and we don’t know what to do with it. It is in a really bad area and a bad school district. We moved here from new york and did not know what we were getting ourselves into. We just bought a new house. Any ideas that will not kill my credit???

]]> By: Robert http://www.debtkid.com/how-will-a-short-sale-affect-my-credit/comment-page-3#comment-21608 Robert Tue, 27 Oct 2009 13:18:02 +0000 http://www.debtkid.com/how-will-a-short-sale-affect-my-credit#comment-21608 Greetings, I am having a big debate on weather or not to short sale as well. I have a condo in New Jersey, which I rent out since I live in California now. I purchased this condo in 10/2005 and it is now worth less than what I purchased it for, however not by much. I think market price for it is about 385 - 405k and I purchased it for 410k and owe 402k. The reason I am considering foreclosure is because I currently have it rented out for $1,900/month but my payments (1st + 2nd mortgage + HOA + tax) all come out to about $3,300 a month. So that means that I am paying an additional $1,400 a month, which before wasn't a big deal but now the time has come where I can't afford to do that anymore. Other than my IRA, I do not have any money in savings so I can't afford to sell it normally because I would have to pay the 5% realtor commission which would then put me back about $20k. I know my case isn't as bad as some other ones on here but it is my personal case so in my eyes it's pretty bad. Could anyone give me some ideas on what I should do here? Greetings,

I am having a big debate on weather or not to short sale as well. I have a condo in New Jersey, which I rent out since I live in California now. I purchased this condo in 10/2005 and it is now worth less than what I purchased it for, however not by much. I think market price for it is about 385 – 405k and I purchased it for 410k and owe 402k. The reason I am considering foreclosure is because I currently have it rented out for $1,900/month but my payments (1st + 2nd mortgage + HOA + tax) all come out to about $3,300 a month. So that means that I am paying an additional $1,400 a month, which before wasn’t a big deal but now the time has come where I can’t afford to do that anymore.

Other than my IRA, I do not have any money in savings so I can’t afford to sell it normally because I would have to pay the 5% realtor commission which would then put me back about $20k. I know my case isn’t as bad as some other ones on here but it is my personal case so in my eyes it’s pretty bad. Could anyone give me some ideas on what I should do here?

]]> By: Why Lawyers Say What They Say :: http://www.debtkid.com/how-will-a-short-sale-affect-my-credit/comment-page-2#comment-21356 Why Lawyers Say What They Say :: Fri, 09 Oct 2009 16:22:14 +0000 http://www.debtkid.com/how-will-a-short-sale-affect-my-credit#comment-21356 [...] 2. Short sales are less damaging to your credit. Short Sale Credit Issues [...] [...] 2. Short sales are less damaging to your credit. Short Sale Credit Issues [...]

]]> By: Dean Herbertz http://www.debtkid.com/how-will-a-short-sale-affect-my-credit/comment-page-2#comment-21263 Dean Herbertz Fri, 02 Oct 2009 09:19:31 +0000 http://www.debtkid.com/how-will-a-short-sale-affect-my-credit#comment-21263 Hi Lanita, this reply is probably a little late but if you are doing a short sale be ready to move quick. Once it closes the new owner can take possession. Hi Lanita, this reply is probably a little late but if you are doing a short sale be ready to move quick. Once it closes the new owner can take possession.

]]> By: Dean Herbertz http://www.debtkid.com/how-will-a-short-sale-affect-my-credit/comment-page-2#comment-21262 Dean Herbertz Fri, 02 Oct 2009 09:16:15 +0000 http://www.debtkid.com/how-will-a-short-sale-affect-my-credit#comment-21262 Hi My, Just to be clear I think a lot of people on this blog seem to forget the purpose of a short sale. #1 You have to be behind on your mortgage and have some kind of hardship to justify why you are in your current situation. If you have equitable assets somwhere else then a short sale is no the answer because it will never be approved. This will come out in your financials. Talk to a Real Estate attorney but my profesional opinion is if your married these are still joint assets. It is all about complete disclosure. Good Luck...Dean Hi My, Just to be clear I think a lot of people on this blog seem to forget the purpose of a short sale. #1 You have to be behind on your mortgage and have some kind of hardship to justify why you are in your current situation. If you have equitable assets somwhere else then a short sale is no the answer because it will never be approved. This will come out in your financials. Talk to a Real Estate attorney but my profesional opinion is if your married these are still joint assets. It is all about complete disclosure. Good Luck…Dean

]]> By: Dean Herbertz http://www.debtkid.com/how-will-a-short-sale-affect-my-credit/comment-page-2#comment-21261 Dean Herbertz Fri, 02 Oct 2009 09:06:36 +0000 http://www.debtkid.com/how-will-a-short-sale-affect-my-credit#comment-21261 Hi mplsgrl2004, ( I am not the Debt Kid) You are correct in that it is not a myth. The lender has the right to file a defeceincy judgment against you, not that it happens all to often because they know you just went through a short sale because you had no money. I personally require the lender to provide a letter stating they will waive any such recourse when we negotiate short sales. And no it is not better to just foreclose because they can still do the same thing on a foreclosure as well. Another thing they may do however is 1099 you for the deficeincy (this happened to me personally) The current tax code gives you one freebee for this on your personal property so it wil not be added as income. you do need to consult an accountant for tax implications however. Good luck....Dean. Hi mplsgrl2004, ( I am not the Debt Kid) You are correct in that it is not a myth. The lender has the right to file a defeceincy judgment against you, not that it happens all to often because they know you just went through a short sale because you had no money. I personally require the lender to provide a letter stating they will waive any such recourse when we negotiate short sales. And no it is not better to just foreclose because they can still do the same thing on a foreclosure as well. Another thing they may do however is 1099 you for the deficeincy (this happened to me personally) The current tax code gives you one freebee for this on your personal property so it wil not be added as income. you do need to consult an accountant for tax implications however. Good luck….Dean.

]]> By: Dean Herbertz http://www.debtkid.com/how-will-a-short-sale-affect-my-credit/comment-page-2#comment-21260 Dean Herbertz Fri, 02 Oct 2009 08:55:29 +0000 http://www.debtkid.com/how-will-a-short-sale-affect-my-credit#comment-21260 Hi Susanna, first of all I specialize in Shortsales and Carlos is incorrect on a few counts. #1 The presumption in a short sale is that you have a proven hardship and are behind on your 1st mortgage. In this case the bank is approving a HUD 1 specifing the cost of the sale which comes out of the sale price approved. The seller niether pays closing costs nor receives any monies from the sale. #2 If you have equitable assets such as your 35 acer lake property then this will not get approved. The attitude of the bank would be liquidate your asset and pay us. Again there is not enough information listed here to determine whether or not you would qualify for a short sale or even if it is your best course of action. Should you have further questions feel free to e-mail me acdcbike@comcast.net see my post below to Nathan regarding short sales. Hi Susanna, first of all I specialize in Shortsales and Carlos is incorrect on a few counts. #1 The presumption in a short sale is that you have a proven hardship and are behind on your 1st mortgage. In this case the bank is approving a HUD 1 specifing the cost of the sale which comes out of the sale price approved. The seller niether pays closing costs nor receives any monies from the sale. #2 If you have equitable assets such as your 35 acer lake property then this will not get approved. The attitude of the bank would be liquidate your asset and pay us. Again there is not enough information listed here to determine whether or not you would qualify for a short sale or even if it is your best course of action. Should you have further questions feel free to e-mail me acdcbike@comcast.net see my post below to Nathan regarding short sales.

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