Upside Down Mortgage

Mortgage Default Notice

Question: How do the following affect your credit?

Foreclosure vs. notice of default vs. missing two mortgage payments, vs. short sale after notice of default. Does a short sale where a person with a loan convinces the lender to take less than what is owed have a larger negetaive effect on credit than curing the loan? And to what extent?

Answer: If you have the ability to "cure" the loan that is the best route to travel. Even if you cure the loan and then sell so you don't get yourself into the same position again. You do not want a foreclosure to go through. If you do not have the ability to cure the loan, then you will want to try to work a short sale. However there are deadlines on a short sale so make sure that if you decide to go this route that you move quickly.

DIY Mortgage Loan Modification Homeowners BEWARE

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!