Submitted by nostradamus on July 9, 2009 - 11:14am.
How did they lose nothing? If they sold for less than they bought, money is lost. If they defaulted, credit score is hurt. Time, taxes, and cost of upgrades, and the 2x closing costs aren't free.
Either way they still got burned, maybe along with the lender.
Money is lost, yes, but if it's not their money, why should they care? credit score hurts, unless they did a short sale, which would then not affect their credit score as much. Time, I guess that's worth something. Taxes, what taxes? Upgrades, you're assume they did upgrades. Like I said, if they didn't have to pay closing cost w/ their own money, they wouldn't lose anything. What if they stop paying for 6 months while living in it rent free? That's worth something.
AN - from my understanding, short sales do have a significant negative impact on your credit score. Maybe not as much as a foreclosure, but a definite derogatory remark.
AN - from my understanding, short sales do have a significant negative impact on your credit score. Maybe not as much as a foreclosure, but a definite derogatory remark.
This is what I said:
AN wrote:
credit score hurts, unless they did a short sale, which would then not affect their credit score as much.
I can't tell you how much it would affect your credit score since I never did one.
How do you know they lost that much $? If they put 0% down and roll the closing cost into the loan, then they lost nothing.
How did they lose nothing? If they sold for less than they bought, money is lost. If they defaulted, credit score is hurt. Time, taxes, and cost of upgrades, and the 2x closing costs aren't free.
Either way they still got burned, maybe along with the lender.
Money is lost, yes, but if it's not their money, why should they care? credit score hurts, unless they did a short sale, which would then not affect their credit score as much. Time, I guess that's worth something. Taxes, what taxes? Upgrades, you're assume they did upgrades. Like I said, if they didn't have to pay closing cost w/ their own money, they wouldn't lose anything. What if they stop paying for 6 months while living in it rent free? That's worth something.
AN - from my understanding, short sales do have a significant negative impact on your credit score. Maybe not as much as a foreclosure, but a definite derogatory remark.
This is what I said:
I can't tell you how much it would affect your credit score since I never did one.