It is always best to discuss with your loan provider. You can maybe qualify for a loan modification or refinance under the government program.
In a very small percentage of them the homeowner's don't even have to stop paying their mortgage which saves their credit score from dropping too much. But for the most part every year the mortgage is not paid it will can usually hit your score somewhere between 75-100 pts but it all depends also on your credit history.
If you need help please call me at 708-262-4506 or TheEckertGroup@gmail.com
Congrats on having excellent credit.
However, ones credit takes a nice hit when one does do a Short Sale.
Check the comps and see if it makes sense to hold on and whether the neighborhood is
Likely to go higher or not.
Otherwise get in touch with the many fine agents and proceed with the short sale, as long as you understand that your credit will be tarnished for about 2 years.
Things can be different if this is a VA loan, etc.
You have had great advice given to you so I will just say that you did a great job in reaching out to a Realtor rather than try and figure it out yourself or just letting it go into foreclosure. I have helped families with this process and 2 years later some of them were ready able to buy another home. Best of luck to you and I wish you all the best through this process.
I was in your shoes 3 years ago. This is how I got into the business. I have successfully helped 75+ families get out of their homes through a short sale. We have a company that processes all of our short sales - Streamline It "Short Sales Simplified." I would be happy to sit down and meet with you to talk about what your next step would be. Feel free to call anytime @ 708-955-4093 or email: firstname.lastname@example.org / Talk to you soon! :)
Realty Executives SourceOne