Posted on: 08th May, 2012 06:23 pm
I have a question that I need help answering! What is the impact on your credit with Foreclosure and Short Sale. We went through a bankruptcy, and our home was included. Due to the home being mortgaged for more than it can sell for, would it be better to just "walk away", or should we attempt a Short sale? Our BK atty said it would be better for us to walk away, since they both have the same impact on our credit, and we may be on the hook for the selling and atty fees associated with a short sale, but our realtor said that a short sale has no impact on our credit, and we would not have to pay anything! I am more incline to believe our atty, but we are really confused. Can someone help??
Hi shill,
A foreclosure will reduce your credit scores by around 250 points whereas a short sale will reduce your credit scores by 80-100 points. If you haven't reaffirmed the mortgage while you were in bankruptcy, then you can surrender the property to the lender and walkaway from it. You won't be liable for paying any deficient balance to the lender in that case.
Thanks
A foreclosure will reduce your credit scores by around 250 points whereas a short sale will reduce your credit scores by 80-100 points. If you haven't reaffirmed the mortgage while you were in bankruptcy, then you can surrender the property to the lender and walkaway from it. You won't be liable for paying any deficient balance to the lender in that case.
Thanks
Hi shill!
Welcome to forums!
To know how short sale will affect your credit score, check out the given page: http://www.mortgagefit.com/discuss/shortsale-crediteffect.html .
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To know how short sale will affect your credit score, check out the given page: http://www.mortgagefit.com/discuss/shortsale-crediteffect.html .
Feel free to ask if you've further queries.
Sussane