I am planning to do a short sale or a settlement with my second mortgage in the process of selling my house. Since the house was already included in my Chapter 7 bankruptcy discharge, no additional negative information can be included on my credit report. The first mortgage will be paid off in full.
Although my credit report will be clear of any short sale/settlement, I know that mortgage underwriters look into other public records where this would show up.
1. Looking a few years down the road, is there any difference to a mortgage underwriter of having done a short sale vs. a settlement? Or are they considered the same thing?
2. Also, is a short sale/settlement on a second mortgage considered just as negative to an underwriter as one on a first mortgage?
Although my credit report will be clear of any short sale/settlement, I know that mortgage underwriters look into other public records where this would show up.
1. Looking a few years down the road, is there any difference to a mortgage underwriter of having done a short sale vs. a settlement? Or are they considered the same thing?
2. Also, is a short sale/settlement on a second mortgage considered just as negative to an underwriter as one on a first mortgage?
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