Short Sale Shift

Are there some credit penalties of a short sale?

-Yes, there are credit penalties with a short sale. Just like some loan, if you are missing payments on your mortgage you are going to have negative marks on your credit for missing those payments. Now with a short sale, lets say you miss a couple payments. You are going to have harmful marks with a short sale. Still, if you go through the entire foreclosure route you will have lots more negative marks because you will almost certainly miss added payments. In addition, when you do complete a short sale there will be something on your credit report that will say debt settled or debt settled for a reduced amount. But, if you have a foreclosure on your credit report it is going to declare debt not settled or foreclosure or something of that kind. So, you will be a good deal better off closing a short sale since the marks on your credit will be a lot less.

My exhusband and I went through the process of a short sell on our house to avoid foreclosure. Does this look the same on my credit report?

if I pay off my home by a sale before the Sherrif sale date for a public auction? I received a letter that gave me until Jan 2nd to pay off the mortgage or stop the foreclosure by a repayment plan or paying what I owe past due. If my house is sold before then and I pay it off, what will it reveal on my credit? A payoff? or a foreclosure?

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my 1st mortgage wants $7000 to modify my loan. This will drain my savings and I will probably be right back where I started. I have and 2nd mortgage as well. Is there any way of refinancing with this on my credit report?

Simply put, pay the mortgage. Short of that you need to contact the lender and try to work something out. You can try a short-sale or a deed-in-lieu of foreclosure. Both would stop the process but neither lets you keep the house.
Declaring bankruptcy will also postpone things a couple months but would you want a bankruptcy and foreclosure on your credit report?
Good Luck!

I heard a person can surrender the keys to their home and sign the deed over to the mortgage lender to avoid foreclosure. Is this true? I guess this is seen on teh credit report still as a foreclosure, but it saves the lender some cost and you don’t go through as much pain and they forgive the debt. is this true???