Is short sale affect your credit score?

Question

We never late on payment and no other debt other than mortgage. We are in the process of divorce and just think to sell the house. Since the price going down, we're gonna have negative equity. How does this work?

Answer 1

YEP it does have negative impact

but not as bad as foreclosure

You need your lender's agreement for this to work

With negative equity and the value of the home being less than the amount of the mortgage, you do a short sale. . . .lender must agree

Other options are Deed in Lieu of Foreclosure--worse impact, keeping home but renting it out if you can get high enough rental to cover mortgage and buy you some time for market to recover

TALK to your lender and see what your options are with them, talk to more than one person at your lender  

Answer 2

i really don't know.