Posted on: 02nd Mar, 2009 01:50 pm
hi,
i currently own a home there is a 128k owed on it, but my place of work may possibly be closing the doors later this year
if i become un employed i am thinking about moving out of state because the michigan economy is so poor. the house will not sell for more than half of what is owed. if the bank agrees to short sale or deed in lieu how badly will this effect my credit score? some one said 60-100 points others said 200-300 points . i just want to get all the facts before i do anything. same question for forclosure. Also how will these effect my abillity to purchase a new property? upon moving i would like to purchase a new property. If in the case i am able to find some one to lease the property will a bank give me a mortgage to buy a second home out of state?
any help is appreciated.
i currently own a home there is a 128k owed on it, but my place of work may possibly be closing the doors later this year
if i become un employed i am thinking about moving out of state because the michigan economy is so poor. the house will not sell for more than half of what is owed. if the bank agrees to short sale or deed in lieu how badly will this effect my credit score? some one said 60-100 points others said 200-300 points . i just want to get all the facts before i do anything. same question for forclosure. Also how will these effect my abillity to purchase a new property? upon moving i would like to purchase a new property. If in the case i am able to find some one to lease the property will a bank give me a mortgage to buy a second home out of state?
any help is appreciated.
Hi dell,
A short sale will affect your credit and lower it by 75-100 points whereas a foreclosure and deed in lieu will lower your credit score by 250 points. In case of a deed in lieu, the deficient amount resulting from the sale of the property is forgiven whereas in short sale and foreclosure, you will have to pay the deficient amount to the lender.
A foreclosure will remain on your credit report for 5 years from the completion date. If you want to purchase a property between 5-7 years, you can only buy a personal residence and you will have to give a minimum of 10% down.
Deed in lieu will remain on your credit score for 4 years from completion date. You will have to give at least 10% down payment if you try to purchase a property between 4 - 7 years of deed in lieu. A short sale will remain on your credit report for 2 years from completion date.
Thanks
A short sale will affect your credit and lower it by 75-100 points whereas a foreclosure and deed in lieu will lower your credit score by 250 points. In case of a deed in lieu, the deficient amount resulting from the sale of the property is forgiven whereas in short sale and foreclosure, you will have to pay the deficient amount to the lender.
A foreclosure will remain on your credit report for 5 years from the completion date. If you want to purchase a property between 5-7 years, you can only buy a personal residence and you will have to give a minimum of 10% down.
Deed in lieu will remain on your credit score for 4 years from completion date. You will have to give at least 10% down payment if you try to purchase a property between 4 - 7 years of deed in lieu. A short sale will remain on your credit report for 2 years from completion date.
Thanks