Does short sale mess up your credit

[JARRETT SHARK]

Well i bought my last house in the top of the market 4 years ago and i am looking to move but my house is 100k less then what i paid, been trying to sell for past 6 months and very little bites. I dont want to mess my credit up because i need it for the next house so i hear to many people saying short sell it. I been on the phone with my morgage company for past 8 months but they all say they cant help. Either they just want my big knot monthly payment or want me to miss a payment for them to help me.
Any thoughts.....

 

[jaa1456]

A short sale is only avaliable as an option before you go into Foreclosure. So yea it will hurt your credit because you will have to miss 2 payments. You are just gonna have to ride it out. I bought my house 4 years ago as well and thank god I talked 40 grand off the asking price.

 

[rkaragozler]

Sorry to give you the bad news but wait it out, unless you take out a second mortgage to purchase another and rent that one. The way I see it, it's going to take another 4-5 years before thing start to come back.

 

[guarda]

It definitely will hurt your credit, probably just as much as a foreclosure would. If you really need to do it, you can try asking your lenders not to report to the credit agencies.

 

[JARRETT SHARK]

So what do people do if they have to move out of state because of work. I guess i can rent my house but its to new for someone to just wreck it

 

[rkaragozler]

when in a situation of moving out of state an agency that is relocating you should be able to find a buyer for the house but at current market value, If you want to rent don't do it alone give it to an agency where they can screen the person that is looking for rentals, you have to pay the agency, but at least 1 thing that you don't have to worry about is, if the person could afford it.

 

[JARRETT SHARK]

the problem isthe renting market is low, might be hard to cover the morgage with the rent a month, dont want to come out of pocket but it looks like that way

 

[Awibrandy]

when in a situation of moving out of state an agency that is relocating you should be able to find a buyer for the house but at current market value, If you want to rent don't do it alone give it to an agency where they can screen the person that is looking for rentals, you have to pay the agency, but at least 1 thing that you don't have to worry about is, if the person could afford it.

Jarrett, even the above is risky if you are concerned with your property being damaged. I'm sorry, but I felt that I need to let you know that lots of these agencies are only in it for the fee they get to collect.
My neighbor went through a rental agency when he first purchased his house, and what he got for his troubles were 2 not 1, but 2 nightmare tenants. Trust me we ALL had to deal with the craziness that went on. Police at all time of the day or night, something unheard of on our block, and then the no rent payments towards the end. Finally the COURT BATTLES to get them out.

My uncle & aunt have an apartment in Rego Park being cared for by an agency while they live in Florida. It's been empty for over 2 years cause they (agency) can't seemed to find a suitable person to rent it to.

Please think and rethink what you do darling! Best would be for you to personally rent it out to someone you personally know that you can TRUST, not only to not destroy your property, but to pay the rent as well.

My very best wishes on this matter!!

 

[bizzarro]

See if you can get a mortgage modification if your income has decreased or other hardships. This process takes a long time and you'll also be jumping through hoops.

I don't know about the short sale process but reading up on it doesn't seem like you have to miss payments, financial hardships like loss of a job or decreased income could be considered by them but then again you had no luck for 8 mos so you're not left with much options.

 

[jerl77]

mortgage modification will work its a long road and you need to miss some payments for sure the guy at work got his morg down 900 a month he now has a 2 % rate
but you lower your payments and keep your house thaty you like
did you lose any income in the last year?

 

[aznt1217]

Whoever told you to short sell your house needs to get educated. They are basically a last option before going into foreclosure. Your situation doesn't seem to require that at all (correct me if I am wrong). Short selling your house is basically when the bank says you cannot pay and decides to sell because their losses would be less - without going through the extra fees and time of the foreclosure process.

With the whole relocation thing. Like Richie said, usually the employer has a process to help you in selling your home for fair market value and it's taken care of.

I'm not sure why mortgage modification came up because it seems like you just want to move (not sure if it's an upgrade or downgrade).

From the sound of it, you just want to sell your house to get into your next one. If this is the case, you have to be cognizant of the current real estate market. Quite frankly it's crap right now and banks are extremely stringent on new loans so you don't want to hurt your credit. If you found your dream home and are scared of losing it, you may have to just lower your price and just get more aggressive about selling it. If you have the time... don't kill yourself.

 

[albano]

... don't kill yourself.

THAT...definitely ruins your credit!

 

[MIKE NY]

Whoever told you to short sell your house needs to get educated. They are basically a last option before going into foreclosure. Your situation doesn't seem to require that at all (correct me if I am wrong). Short selling your house is basically when the bank says you cannot pay and decides to sell because their losses would be less - without going through the extra fees and time of the foreclosure process.

With the whole relocation thing. Like Richie said, usually the employer has a process to help you in selling your home for fair market value and it's taken care of.

I'm not sure why mortgage modification came up because it seems like you just want to move (not sure if it's an upgrade or downgrade).

From the sound of it, you just want to sell your house to get into your next one. If this is the case, you have to be cognizant of the current real estate market. Quite frankly it's crap right now and banks are extremely stringent on new loans so you don't want to hurt your credit. If you found your dream home and are scared of losing it, you may have to just lower your price and just get more aggressive about selling it. If you have the time... don't kill yourself.

x2..Jarrett good advice here
..it's a buyers market right now for anyone with good credit and the $ for a down payment....selling is the ***** because if you bought within the last ten years your going to take a bath on the sale ..our homes are lower, but our taxes are higher!

 

[JARRETT SHARK]

your right, can't win either way...

I guess i will try to buy another one and rent this one i am in right now

 

[MIKE NY]

about the only thing you can to do without losing your shirt...just be real careful who you rent to...the only ones doing well are those selling here and moving to lower cost of living areas of the country...alot of my friends are selling here and buying and building mansions in the southwest and the Carolinas for the same or less money and the taxes are SOOOOO much cheaper...unfortunately we live in the highest taxed county in the country.

 

[Josh]

Depends on the mortgage. If you have an ARM mortgage you can get them to readjust with just one phone call. I cut $200 off a monthly payment just by calling them and asking. If you have a fixed mortgage it will take a long time and it will cost you at least one point depending on what rate you get.

 

[Josh]

our homes are lower, but our taxes are higher!

You can go to the state and ask for them to lower the taxes on your home based on the newly assessed value.

 

[JARRETT SHARK]

Depends on the mortgage. If you have an ARM mortgage you can get them to readjust with just one phone call. I cut $200 off a monthly payment just by calling them and asking. If you have a fixed mortgage it will take a long time and it will cost you at least one point depending on what rate you get.

I HAVE A FIXED RATE AND I CALLED ALREADY AND THEY SAID THEY CANT HELP BECAUSE I AM NOT LATE ON PAYMENT, I SPOKE TO MORTGAGE BROKER TODAY AND MY BIGGEST PROBLEM IS THE HOUSE CANT APRASE FOR WHAT I OWE ON IT, NOT LIKE THE OLD DAYS WERE I CAN SHOW COMPS, BANK USES THERE APPRASERS NOW :irked:
NOW I KNOW MY HOUSE IS DOWN 100K BUT THEY SAID PAY $400 TO SEE WHATS IT WORTH BUT I CAN USE THAT $400 ON SOMETHING ELSE RIGHT NOW INSTEAD OF THEM TELLING ME SORRY THE MARKET IS DOWN AND WE CANT HELP YOU RIGHT NOW,

 

[MIKE NY]

You can go to the state and ask for them to lower the taxes on your home based on the newly assessed value.

I did and also have a law firm who file for me every year in court...the property tax went lower, but the school tax keeps going up making up the difference and more....:smash: