BiggerPockets

Thanks so much - Jake & other posters - for all your invaluable info on your short sale experiences. Hearing you overcome this tough situation is definitely an encouragement.

I am a homeowner who has recently come into a very bad situation and must give up my home. :cry: I'm about to go throught the process of attempting to sell my home in a short sale. I guess I am considered one of the " lucky" ones since both my 1st & 2nd mortgages are with one lender- Chase. My biggest dilemma at this moment is dealing with the fact of ruining my credit, which I have worked so hard to maintain for so long. I currently am at an 800 FICO score.

I haven't paid my mortgage as of yet this month. If I don't make payment by the 31st (2 days... yikes :shock: !!) I will have my first hit on my credit report. Although I may be able to make my payment this month, it is highly unlikely I'll be able to continue to do so thereafter.

Has anyone been through a short sale - or know of someone who has - who didn't pay their mortgage during the process, & can give some insight as to how badly their credit scores were affected? Any info would be greatly appreciated.

Thanks!
Joann

Joann,

if this thread hasn't died, your credit will take a huge beating by missing payments. Expect that two missed payments will bring you well into the sixes. More than two missed payments is anyone's guess on your credit.

Good luck.

I don't claim to be an accountant or an attorney, which is who you should really talk to, but there are millions in the same situation as you right now.

If you are deciding between a short sale versus Foreclosure, of course the short sale is going to be better, you can recover to buy another home within a few years, versus 10 years from just walking away.

The best option is to go directly to your Lender for a Loan Modification. Explain your hardship, and let them know you are ready to walk away.

With 11 Million homes moving towards foreclosure, banks are very willing to work things out with anyone willing to try.

You need to be a month or two behind before they understand you are serious.

Take the hit and keep your home...

If after they lower your payments you still aren't able to make the payments, you can always move forward with a Short Sale.

you can recover to buy another home within a few years, versus 10 years from just walking away.

David,

I agree with the sentiment of this comment, but let's be careful with our "facts". Where in the world did the "10 years" come from?

yikes!!