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zeunice1 · Joined: 27 Oct 2009 Posts: 1 1.41 Dollars($)

Okay I have horrible credit but my husband does not. Over 4 years ago (February 2005) my parents bought a house in my name, in New Jersey and now I am screwed because they can't afford to pay for the house and I can't either. The house can't be sold because the house needs major, I mean major repairs and could foreclose. It may have former termite damage so on and so forth. The loan for the house is somewhere around $400,000.00 (the bank is attempting to give us a 6 month forbearance to help us). Short sale could be out of the question wouldn't it because that would further destroy my credit?
My husband and I now want to buy our own home in another state (maybe Texas, far away from my parents) and wonder how this will affect his credit score, again his credit score is fine it's mine that is damaged. Would we be able to buy a home in his name only? What can I that is not the case if we want to buy our own home?

savior70 · Posted: Wed Oct 28, 2009 5:17 am Post subject:

Hi,

A short sale would actually be a better option than a foreclosure. The negative effect it has on your credit is less than that due to a foreclosure. Your credit scores drop by something around 75-100 points. Compared to this, a foreclosure reduces your scores by as much as 250 points. But even in a short sale, you will remain liable for the deficient amount and the lender can come after you to collect it.

Your husband's credit will not be negatively affected by the short sale, unless he is listed on the loan. He can surely purchase a new home in his name. He can then add you to the title to the new house in future.

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Screwed up mortgage issue. HELP!