2 Responses to “How does a mortgage short sell work, and how will it effect my credit?”

1. eeley says:

   February 18, 2010 at 6:04 pm

   With a short sale, you are selling your home for less than the balance due on the mortgage. This way you are still paying back some of what you owe to the mortgage company and avoiding foreclosure and subsequently bankruptcy. You need to make sure the lender will agree to the short sale and will not hold you responsible for the deficiency balance. Get any agreements you make with them in writing. Good luck!
2. STEVEN F says:

   February 18, 2010 at 9:40 pm

   In a short sale, you are asking your mortgage company to accept the proceeds of the sale as full settlement of your debt. This is better than a foreclosure, but is still a partial forgiveness of the debt. A less damaging option may be to convince the bank to allow the sale and give you a loan for the difference. Unless you can afford to keep the house, you are better of with one of these options.