Posted: Tue Dec 02, 2008 5:43 am Post subject: should I ?
have a 2nd home which needs work. cannot afford to fix it up and pay the mortgage on both homes and other bills am retired and on a fixed income have used up most of my savings keeping all bills current
A foreclosure will badly affect your credit report. It will lower your credit score by 250 points. Moreover if the lender cannot recover his due amount from the sale of the property, he may even ask you to pay the deficient amount or can even place liens on your other properties. Check out with your lender for the option of a short sale or a deed in lieu foreclosure. _________________ Procrastination is the enemy of your financial sucess
hank Guest
Posted: Wed Dec 03, 2008 6:00 am Post subject:
thanks Adonis,being that the property is considered a rental prop and all payments are up to date. can i still do a short sale
I don't think you will face any problem in short selling rental property. But as you are up to date on the payments, I guess the lender will not be ready for a short sale. Lenders agree to a short only when you are delinquent on payments. _________________ Procrastination is the enemy of your financial sucess
Bjmj Guest
Posted: Mon May 11, 2009 10:47 am Post subject: Tired of house
I live in a town home however i want to leave it the other home owners hardly pays there dues roofs leakin lights r not workin in common area become very dangerous do i let my house go into forclosure or a short sale will forclosure affect my credit for how long will i have to pay back any money
MHL Guest
Posted: Tue Oct 20, 2009 4:14 pm Post subject: Coborrower has a foreclosure
I was wondering if I myself am applying for a home loan and I need a co borrower in order for my own loan, but the co borrower in question has a foreclosure on their credit report how does that affect my home loan? Will it just increase my interest rate or would it affect my debt to income ration?
You can either short sell the property or let it be foreclosed by the lender, in case you do not want to keep the town home. You can also opt for a deed in lieu of foreclosure and sign over the title to the lender. But no matter which one you opt for, your credit scores are surely going to be affected. In case of a short sale, your credit will be hit by around 75-100 points. On the other hand, a foreclosure or a deed in lieu will both drop your credit by almost 200-250 points. The difference is that unlike a short sale and a foreclosure, in a deed in lieu the deficiency is likely to be forgiven by the lender.
To MHL,
The co-borrower is as much responsible for the loan as the primary borrower is. It is true that the credit score of the primary borrower is the main factor that affects the interest rate on your loan. But if the co-borrower has a good credit score, it too affects the interest rate on the loan. However, if the co-borrower has a lot of debts, it will also increase your DTI ratio which can affect your chances of qualifying for the loan.
adonis
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