- This topic has 10 replies, 9 voices, and was last updated 17 years, 3 months ago by
robyns_song.
-
AuthorPosts
-
March 30, 2007 at 4:07 PM #8714March 30, 2007 at 5:53 PM #48792
an
ParticipantThat’s very interesting. I thought the whole point of a short sale is to save your credit. If that’s not the case, then why would anyone do a short sale? I would just live free rent until I get evicted.
March 30, 2007 at 6:04 PM #48793LookoutBelow
ParticipantI think your going to see a lot of THAT in the future, hell, they're going to screw over their credit even if they cough up the shortage, so live rent free and save, they're gonna need it after the bank is done with their credit
March 30, 2007 at 7:51 PM #48799SD Realtor
ParticipantYep AN I totally agree. I was always under the impression that a short sale is less damaging then a foreclosure but that was only an assumption.
SD Realtor
March 30, 2007 at 8:02 PM #48802Bugs
ParticipantA foreclosure shows up as a foreclosure, whereas a short sale only shows up as a deficiency. Foreclosure is harder on the credit rating.
March 30, 2007 at 8:24 PM #48803Happy renter
ParticipantThe Affect Of A Short Sale On Your Credit in 3 different situations:
1. If the lender chooses to sue the borrower for the difference of short sale, and the homeowner cannot pay, a deficiency judgment would appear on the homeowner’s credit report, negatively affecting the homeowner’s credit.
2. Often, the bank chooses not to sue. Even when the bank chooses not to sue, the foreclosure can end up showing up in credit checks because it is a public record.
3. If the property owner needs to take a new loan from a bank in order to make up the difference from the short sale, most likely the new credit score will not be drastically different than the property owner’s credit score before the short sale.
My friend took a new loan after the short sale during the last housing down time market. It did not impact his credit at all.
March 30, 2007 at 10:33 PM #48809North County Jim
ParticipantSDR,
Just by chance, is this house on Hollowbrook in SEH?
March 30, 2007 at 11:21 PM #48818sdrealtor
ParticipantThe mapping change has been a debacle and we’ll be back with Mapquest by the end of next week. Gotta love the decision makers at the Board.
March 30, 2007 at 11:29 PM #48820TemekuT
Participanteffect! I go crazy when people confuse “affect” and “effect”
sorry, it’s been a long day and week of trying to convince family members to sell now!
April 1, 2007 at 11:16 AM #48865SD Realtor
ParticipantThanks for the input guys!
sdr – yeah that mapping change was BRUTAL.
north county jim – No the house was not there. It was on Manor Lane in Carmel Valley. It shows up as a cancelled listing on the MLS as of early March.
happy renter – thanks for the information.
I believe these sellers are gonna go down with the ship. NOD was filed about a week ago.
SD Realtor
April 1, 2007 at 8:32 PM #48872robyns_song
ParticipantI haven’t come across any instances yet where any of the banks have sued for the net loss after the short sale, BUT they do have to approve the short sale amount. If the bank does incur a loss (which they nearly always do), they can write it off, but the borrower has to pay taxes on that amount come April (the amount of the total debt at the time less the selling price, not just the difference in the prirncipal balance)!
-
AuthorPosts
- You must be logged in to reply to this topic.