short sale credit

So your question is a bit confusing, but I think I know what you're asking.. if there is a home where 2 people are on the Deed, but only one person is on the loan, then the person who is on the loan will have a bad mark on their credit report for the short sale, but the person who was not on the loan, but only on the Deed, will not have a mark on their credit.. But if you looking at this as a way to go out and purchase another home with the persons credit who wasn't destroyed by the short sale, you need to understand it might not work.. On the application for a mortgage, it's asking about your residency history for the last 2 years.. If you list the home that short sold as your home, which you must.. Then it also asks if you owned or rented... if you cannot mark either box, then the lender is going to require a letter of explanation.. If you explain the you lived in a home where you were on title, but not the loan, and it was short sold, your done.. you might want to get with a local mortgage broker now and have him explain all your options before you commit to this strategy... it could backfire... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

William's answer is spot on. If you are not on the loan then your credit will not be hurt, but like William has already pointed out, that does not mean that you will immediately be able to receive financing for a home. That being said, your ability to receive home financing will depend on the details of the short sale. Are you currently late on your mortgage? What is the reason for the short sale? It is possible for the party involved that was not on the loan to get a mortgage. We are a direct lender here in Union, NJ. Call or email me if you wish to further discuss your options. PBotros@OmegaLoans.net or call me at 908-933-0253 ext.319 or ask for Peter.

No. If a credit goes bad, only the people who signed the note will have their credit impacted. If you were on title and the property was either foreclosed or sold short, then depending on your relationship with the person on the loan, you may or may not be able to purchase soon after the short sale. Many lenders will hold a non-borrowing spouse that was on title at the time of the sale or foreclosure to the same "Penalties" as the borrowing spouse. And some lenders are even stricter. The best way to find out if yo are going to qualify for a loan is to work with a local Mortgage Banker/Broker, rather than one of the big banks or national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. We have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, we are trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Short sales definitely affects the owner of the mortgage and can impact an individual who is on deed only. It is advisable to speak with a real estate attorney, as well as consult with a local mortgage loan originator who can explain a short sales impact on your ability to apply and be qualified for a future loan.