Short sale

Short sale

Supbill's avatarSupbillNew Member

I am going through a divorce and just bought home 6 months ago. I need to sell house in terms going on short sale. What am I liable or what is worse case scenario if I am upside down on sale.

Re: Short sale

JosephMontanaro's avatarJosephMontanaroCommunity Manager

This is a question you should discuss with your attorney. If you and your spouse bought the house jointly, you’ll both be responsible for whatever happens until the mortgage is paid in full, settled (short sale) or defaulted. A short sale, selling the house for less than what is owed, will require the cooperation of your lender and often times, but not always, the lender will not be willing to approve the short sale unless there have been missed payments. When you combine the missed payments that hit your credit record along with the debt that was “settled” it can have a dramatic impact on your credit score and certainly will affect your ability to borrow in the future.  This is definitely something you and your lawyer will want to map out a strategy to address in a manner that will be the least harmful. 

Re: Short sale

TaraCrooksUSAA's avatarTaraCrooksUSAACommunity Manager

Thanks JJ!