Re: Effect of Short Sale
Posted by steele in minnesota on December 29, 2007 at 08:52:05:
In Reply to: Re: Effect of Short Sale
Posted by Julio Martinez-Clark on December 29, 2007 at 01:38:36:
As suggested you really need to consult an expert in this area. Perhaps your lender to see how they would report it, perhaps get a second opinion from a financial advisor.
On flip side of the coin (as suggested by some real estate attorneys that I work with), it could show on your credit report as an adverse item. It is not simply "settled", it is settled with less than full repayment. It is still debt forgiveness one way or the other (IRS rules not withstanding).
So it would largely depend on how it would be reported. And your lender contact may not know how the final report will appear.
Still, all in all, it will certainly be better than a foreclosure. All a matter of perspective.
Steele
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