foreclosures..

Guest

My husband recently had a back surgery that has left him unable to work. We had two rental properties. Both renters have moved out and we are paying 3 mortgages currently with only one income. We can not keep it up, and if we are unable to get them rented/sold (we are trying both), then we will be forced to let them go. How does 2 properties effect one's credit if they were to go to foreclosure, a deed in leiu of a foreclosure, or a short sale? Sad

jameshogg · Posted: Tue Oct 20, 2009 10:33 pm Post subject:

Hi kanga,

If the property goes for a foreclosure, then your credit would be badly affected. Your score would be reduced by 250 points and you would be liable to pay off the deficient amount.

In a deed in lieu of foreclosure, your credit score would be reduced by 250 points but you won't be liable for the deficient amount resulting from the sale. In a short sale, you would be liable for the balance amount resulting from the sale of the property but your credit score would be reduced by 75-100 points.

Thanks

thewretched02 · Joined: 21 Oct 2009 Posts: 18 3.29 Dollars($)

no matter what you do, if you start missing payments your credit will suffer, it's just a matter of how much.

All times are GMT - 7 Hours

Page 1 of 1