MR CJ Posted January 30, 2008 Report Share Posted January 30, 2008 My Son is in the Military and purchased a house 2 years ago....(I told him not to do it). The loan is 407K ....10 year fixed,intreast only, then adjustable. He has orders to relocate and will have to sell the home, well, the housing market is in shambles and the home is worth less than what he paid for it. He is not late, or has never been late on his payments and has a 740 credit score......He may have to short sale the home...How will this effect his credit??? Link to comment Share on other sites More sharing options...
morrow Posted January 30, 2008 Report Share Posted January 30, 2008 Not sure how it directly affects your credit, but its certainly better than foreclosure. Good luck. Link to comment Share on other sites More sharing options...
BobLoblah Posted January 30, 2008 Report Share Posted January 30, 2008 I cannot see a short sale showing up on a credit report because it should not effect the payment history as long as all the payments are made on time. I have seen forclosures showing on a report even after the foreclosure proceedings have stopped. The lender typically will take a short sale to prevent an all out foreclosure, once the loan gets to that level. What makes you think your lender will approve a short sale?"For a short-sale to work, according to Huston, you not only need to convince the lender that you're not in a position to keep up the mortgage, you must also attempt to prove that the selling price you can get is the highest price the market will bear. Ultimately, Huston says, the lender will make that decision. There's no prearranged agreement that they'll somehow just take whatever you're able to sell for. " by Mark Zdechlik, Minnesota Public Radio Link to comment Share on other sites More sharing options...
morrow Posted January 31, 2008 Report Share Posted January 31, 2008 From what Ive read, it can show up on your CR as "settled debt".Its hard to say how it will affect your overall credit.Sorry im not much help with this topic. Link to comment Share on other sites More sharing options...
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