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Need as Short Sale |
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Hi, I own a townhouse and got behind on 5 months of payments and taxes recently after the death of my father. (His illness and death had a huge financial impact on my family. No med insurance.) Although my finances have stabilized, I cannot seem to catch up so I have decided to sell the house. My realtor has recommended a short sale. We have an offer that is about 16% less than what I owe the mortgage co. The first mortgage co has decided not to take the offer but to take the full amount and to let the second mortgage co take the hit. My questions to you are about how this transaction will affect my credit. Will I be able to buy another home anytime soon? Is my credit destroyed? Is there anything that I can do to protect it at this point?
Many thanks,
Rosie |
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I'm afraid there isn't much I can do for you. That short sale is less damaging to your credit rating than a foreclosure would be, but that's about it. And the bad news is that the IRS may come after you, considering that forgiven debt as taxable income--money you once received and never paid back. |
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Edith
Originally published on July 16, 2007 |
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