 jameshogg
Joined: 20 Dec 2005
Posts: 5203
Location: nevada
651.69 Dollars($)
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 Posted: Tue Sep 08, 2009 9:37 pm Post subject: |
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Hi Lou,
Short sale and deed in lieu are options to avoid foreclosure. In a short sale, you will have to sell off the property at a lower price. You will have to pay the deficient mortgage amount resulting from the sale of the property to the lender. If you do not do so, the lender would charge off the loan to a collection agency who will in turn collect the dues from you. A short sale will lower your credit score by 80-100 points. To know more about how a short sale affects credit score, check out the following link:
http://www.mortgagefit.com/discuss/shortsale-crediteffect.html
In a deed in lieu of foreclosure, you will have to surrender the property to the lender. The lender will sell off the property and you will not be responsible for the deficient amount resulting from the sale of the property. However, it would lower your credit score by 250 points.
Thanks |
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