Short Sale Real Estate

[Anonymous]

I have a house which has a 3 year bridge loan on it. I have a buyer but because of the housing market and neighborhood I will have to take a short sale. This would not be a foreclosure or forced short sale.  The bank is agreeable but the amount isn't specific at this time. My current FICO is over 770. The bank will ding my credit but I'm wondering how it will affect my score since there are no late payments and no foreclosure. I am having problems finding a place to ask this question of someone who is conected with My FICO.com who can tell me specific answers.

[Lel]

Unfortunately, regardless of whether you are current at the time of your short sale, a short sale has a significant negative effect on one's credit score.  For a score as high as yours, you could see a drop of 100 points or more.

On the positive side, since you were not delinquent prior to the short sale, you are technically permitted to obtain a new mortgage immediately.  If you were late at the time of the sale, there would be a waiting period.  However, even though you are eligible for a new mortgage, lenders/underwriters have their own criteria for making loans, so it might be difficult to find a willing lender.

[Anonymous]

Thanks for the information. I am not in need of another mortgage as I have a home financed by the same bank and I have no future major purchases planned at this time. The bank is open to negotiations on the amount of short sale as I am undertaking some of it myself. The amount of short sale will probably be between $30k and $40k of which I am going to pay a minimum of $25k.