Posted on: 11th Jan, 2009 09:55 am
i am going through a divorce and our house has been on the market for over nine months. the bank has agreed to a short sale on the first mortgage but there was no money left to pay off the second mortgage. they have informed us that they will be sending it to collections. neither of us is living in the house and no payments are being made. what are our options considering we don't have any money to pay the debt? how/how long will this affect my credit?
Hi slp,
As the second mortgage company will be sending the mortgage to collections, it will be collection agency who will be collecting the debts from you. If you pay them off, then it will not affect your credit much. However not paying the collection agency will definitely lower your credit score and it will stay in your credit report for 7 years and other creditors will be able to see this.
Thanks
As the second mortgage company will be sending the mortgage to collections, it will be collection agency who will be collecting the debts from you. If you pay them off, then it will not affect your credit much. However not paying the collection agency will definitely lower your credit score and it will stay in your credit report for 7 years and other creditors will be able to see this.
Thanks