Usually, people in financial distress pay their mortgage loan first, and let the credit cards slide into default. Once they can no longer make their mortgage loan payments, they may be candidates for preforeclosure, and/or preforeclosure short sale.
The majority of all negotiated short sales involve mortgagors who are unable to service their mortgage loan debt.
The damage to their credit is already done. A short sale would prevent a further deterioration of credit since a PFCSS would keep the property from being exposed to a forced, public sale.... the ultimate no-no.
Yeh, this has always baffled me. The owner of record hasn't made a payment in months on anything. He now wants to know if the short sale will effect his credit. Unconsciously I have replied on occasion, "You are kidding-arent you"?
His credit is so badly bruised that a SS wouldn't even register on the seismograph.
By the same token, I think it is dishonest to tell him that the SS will "save his credit". What credit?? Whether they file BK, do a SS, or let it go to foreclosure there will be little additional impact on their credit www.history.The default has already been reported. Charge offs, collections, and rolling lates have all been reported.
Usually, people in financial distress pay their mortgage loan first, and let the credit cards slide into default. Once they can no longer make their mortgage loan payments, they may be candidates for preforeclosure, and/or preforeclosure short sale.
The majority of all negotiated short sales involve mortgagors who are unable to service their mortgage loan debt.
The damage to their credit is already done. A short sale would prevent a further deterioration of credit since a PFCSS would keep the property from being exposed to a forced, public sale.... the ultimate no-no.
Yeh, this has always baffled me. The owner of record hasn't made a payment in months on anything. He now wants to know if the short sale will effect his credit. Unconsciously I have replied on occasion, "You are kidding-arent you"?
His credit is so badly bruised that a SS wouldn't even register on the seismograph.
By the same token, I think it is dishonest to tell him that the SS will "save his credit". What credit?? Whether they file BK, do a SS, or let it go to foreclosure there will be little additional impact on their credit www.history.The default has already been reported. Charge offs, collections, and rolling lates have all been reported.