Short Sale/foreclosure
I was about to purchase a condo to help a friend out before the morgage company forecloses so I went through the short sale process. But I found out that even if I purchase the place lower than whats owed then my friend will still owe on the loan amount and it'll reflect on their credit report. She owes more than the house is worth. The cost to fix the place would be another amount. The only good thing is that she has a renter in there paying more than the amount.
Question is will she get hit on her credit report as a foreclosure even if I purchase it as a short sale?
Hi ssjost,
I would stipulate in my Short Sale offer that your offer to purchase is contigent upon the bank waiving any difficiency judgement against the borrower. Make them put this in writing.
If you do, and they do, the Short Sale purchase will most likely be reported to the credit agencies as "Settled" or "Paid"!
Best of Success!
BAMZ