We just recently purchased a new home.....we sill have a condo that we have not sold.....we owe 120 on the condo and it is not worth that at all....the condos are selling for about 80 grand only....we had the intention of renting it out but its not working out as we planned...can we do a short sale on the condo???? how long will it effect my credit? can they come after me for the amount that it is short saled for later on?
Ed Atun
Favorite Answer
You can easily do a short sale on the condo. You are in the perfect situation.
It will affect your credit possibly for 3-5 years. It is possible to get the bank to agree to not report it to the credit agencies if you have never missed a payment.
If you still have the mortgage from when you bought the condo, it is unlikely that the bank will come after you. Those are called "purchase money mortgages". If you refinanced or added a 2nd loan, the bank has an increased chance of going after you. You could demand a promise (in advance of the short sale) that the bank will not come after you.
Steve D
You can only do the short sale if the bank holding the mortgage agrees. They probably won't agree unless you are behind on your mortgage (the first step to hurting your credit). There is no guarantee they will agree since you happen to own a second house. If they agree, they will not come after you for the difference (if they did, why would anyone ruin their credit and still owe the difference). You will probably take an immediate 150 point hit on your credit score, and expect to take up to two years to rebuild your credit.