You have a few questions â€“ let me try to answer them:
Q: Your second mortgage can't be part of the short sale, right?
A: It has to be â€“ itâ€™s not going to magically go away. You have to either pay it off or negotiate a settlement, just like with the first. In all of our short sales, we mitigate both mortgages together. Typically, the first dictates what the second will be allowed. More often than not, the second disagrees and then it starts to get ugly â€¦
Q: Also, if I am approved for a short sale and I leave the state to pursue my job offer, can I stop making my mortgage payments?
A: No one in this forum can or should answer this question for you â€“ itâ€™s best answered by your accountant and/or attorney.
Q: If I stop making my mortgage payments will that make my credit rating even worse than it will be from the short sale?
A: This answer is similar to the one above â€“ HOWEVER, I can tell you that most people in a short sale situation have already stopped making payments. Itâ€™s nothing we can or will advise you to do â€“ Iâ€™m just reporting what I see in our sphere of influence. Will it mess up your credit even more than a short sale? Without all the particulars I canâ€™t tell you â€“ with the particulars, Iâ€™m not ALLOWED to tell you. This is where this answers becomes the same as the one above â€¦
Hope that helps â€“ we do a lot of short sales â€“ let me know if you have any additional questions.
I have spoken to two attorneys that feel very strongly that short sales should be avoided in certain instances.
There are many attorneys in Riverside County who will help you and give you free consultations.
Not all short sale requests are approved because the owner stops making mortgage payments. The owner needs to prove a genuine hardship before a bank will consider accepting less on a mortgage than what is owed. Please be careful and get all the facts about a short sale before moving forward.
In a short sale, the second mortgage is negotiated along with the first mortgage, which becomes a bit more complicated if you have different lenders for your first and second.
Most people stop making their mortgage payments because it is a hardship for them. Some people stop making them because they just don't care anymore. It is hard to say how much your credit score will be affected, because there are many factors that contribute to your score. However, if you take the proper steps over the course of time, you can and will rebuild your credit.
I wish you the best, and better things to come...