how does doing a short sale effect you credit. And what is the best way to protect your credit?

Question

We have only lived in this house for 3 months, we were lied to about it value, the agent lied on the loan papers, our other home wasn't purchased by the investor as verbally promised, and a promised raise was denied. My partner has a security clearance she needs to protect so we can't destroy are credit, the home is worth almost 100k less then we paid for it. How can we save ourselves?

Tino · Accepted Answer

you have to keep paying the mortage. and sue.

acermill · Answer

If you can't risk a credit issue because of her occupation, your ONLY option is to come up with the $100K shortfall at the time of sale.  In a short sale, your lender agrees to release the lien on the property and accept as PARTIAL payment of your mortgage balance whatever amount is derived from the sale.  You will still remain financially liable for the shortfall of $100K.  If you do not pay this shortfall, it will appear on your credit file(s) as unpaid and due.

Credit histories are exactly THAT....a history.  Anything you do in terms of credit, good or bad, is going to appear in that file.

As a side note, if you are NOW aware that you were lied to by all these folks, why didn't you take the time to make yourself aware of the same fact BEFORE you signed the dotted lines ?

Paige · Answer

you should sue who ever is liable, also you should have done your own research instead of just listening to your agent.  Also, the bank sends their own appraiser, and they would not have financed a house 100K over the value.  You have misunderstood something.

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how does doing a short sale effect you credit. And what is the best way to protect your credit?

3 Answers