How does a short sale on our home loan affect obtaining a student loan? My daughter is on the home loan.

Asked by Concerned Parent, California Wed May 6, 2009

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Keith Sorem’s answer
Keith Sorem, Agent, Glendale, CA
Thu May 7, 2009
When the short sale is negotiated you should make sure that she is excluded and not harmed. Who is conducting this short sale?

You need a WRITTEN agreement as to how the parties are hit with the results.
Everything is negotiable.
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Vicky Chrisn…, Agent, Purcellvile, VA
Wed May 6, 2009
It will affect her just as it does you. I have a client that completed a short sale in January. It took his score down about 100 pts, but as of that time, the mortgage was showing open - once it is reflected as closed, hopefully that will be a little better. In any case, he was ineligible to co-sign on his son's student loans, which really left him in a bind. We figured out a plan, but it was not easy.

A foreclosure on your daughters credit will be worse.

This is terrible. As a mom, I can't fathom having my child on the hook for my debts - it is usually the other way around. How could this come to be? I am not trying to make you feel guilty, but I just don't get it. I can not imagine facing an issue where my daughter would have to pay for my financial sins.

I wish the very best for you and especially your daughter.
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