short sale or foreclosure on a unliveable property under my name.

kona718 · Joined: 30 Sep 2008 Posts: 1 1.43 Dollars($)

I was talked into putting my name on title and loan of a property for my family members home 6 years ago when I had barely graduated college. The agreement was that it would only be under my name for 2 years max until it was fixed up and resold for a profit. However, now 6 years later it still remains incomplete, and in my name, and now has declined greatly in value. The mortgage on the property is $210,000. My family (without informing me) can no longer afford to make the payments and it is now in default. I have a buyer who wants to buy it for $150,000 via short sale, in hopes the lender will accept the offer to get it off of my name. How much will this shortsale effect my credit? Also if the lender doesnt agree to short sale, what other options do I have? I have my own private residence home that I have a large mortgage on so I cannot afford to pay this property in addition to my own. I'm confused and stressed and need help please!

jerry · Posted: Tue Sep 30, 2008 1:42 am Post subject:

Hi Kona!

I can understand your situation and hope you get out of it very quickly. You can speak to your lender about the buyer who will buy the house from you by a short sale. Remember that if you go for a short sale, you will have pay the "deficient amount" to the lender. The deficient amount is the difference between the due amount to the lender and the amount for which you are selling the house.

A short sale will definitely affect your credit score but the negative impacts will be much less than a foreclosure.

Thanks,

Jerry

Guest 0.10 Dollars($)

Speak to your lender about the buyer that you have got. But yes, I agree with Jerry that in case of short sale, you will have to pay the deficient amount to the lender.

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