Posted on: 12th Apr, 2010 04:28 pm
I currently own a house that I owe around $200k on it that is valued around $140k We are going to be moving to another state for family reasons and need to find out how I can sell my house with the least amount of credit hits and issues.
I am not behind on any payments and not in any forclosure agreement but need to sell the house. Would it be best to try and work with the mortgage company to do a short sale? I have researched both short sales and deed in liu of mortgage but neither sound good for my situation. I know I am going to lose $50-$60K as soon as I sell it and they will not let me take out a loan for the other portion to pay off. I looked into getting a loan to make up the difference but without collateral I am not able to do so. I do not want to walk out on the house as I signed a contract and want to honor that but not going to have a choice in moving come July.
What are my options?
I am not behind on any payments and not in any forclosure agreement but need to sell the house. Would it be best to try and work with the mortgage company to do a short sale? I have researched both short sales and deed in liu of mortgage but neither sound good for my situation. I know I am going to lose $50-$60K as soon as I sell it and they will not let me take out a loan for the other portion to pay off. I looked into getting a loan to make up the difference but without collateral I am not able to do so. I do not want to walk out on the house as I signed a contract and want to honor that but not going to have a choice in moving come July.
What are my options?
Hi djbutenschoen!
Welcome to forums!
If you want to save your credit score, then a short sale would be a good option for you. Your score would go down by 80-100 points. However, you would be liable for paying the deficient balance resulting from the sale of the property. However, if you do not want to pay the deficient balance, then a deed in lieu of foreclosure will be a good option for you. However, your score would go down by 250 points.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you want to save your credit score, then a short sale would be a good option for you. Your score would go down by 80-100 points. However, you would be liable for paying the deficient balance resulting from the sale of the property. However, if you do not want to pay the deficient balance, then a deed in lieu of foreclosure will be a good option for you. However, your score would go down by 250 points.
Feel free to ask if you've further queries.
Sussane
So for a short sale I need to have the house on the market for 90 days and be ready to move asap correct? Does this affect me getting another mortage in a year or two? How does it show up on the credit report?
Hi djbutenschoen!
Welcome to forums!
In order to get a short sale, you'll have to list your property in the market for 90 days. After a short sale, you won't be able to get a mortgage immediately. You'll have to wait for 2-3 years in order to get a mortgage. A short sale will be mentioned in your credit report for the next 7 years as any other negative item.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
In order to get a short sale, you'll have to list your property in the market for 90 days. After a short sale, you won't be able to get a mortgage immediately. You'll have to wait for 2-3 years in order to get a mortgage. A short sale will be mentioned in your credit report for the next 7 years as any other negative item.
Feel free to ask if you've further queries.
Sussane