Question: I am working on a short sale with my primary lender and plan to move into my condo that was a rental. I have a second on the condo that is held by the same lender I’m doing a short sale with. This loan is floatin at todays rates. Do i need to worry about this loan when my credit goes south after the short sale and will i be able to refi it after a short sale
Answer: – Your credit will be affected for a few years after the short sale. The short sale credit impact you feel will only be for a short sale and is not as bad as a foreclosure or bankruptcy. With a little diligence and credit repair, you should be able to refinance within a few years once your credit is established again and assuming your home value does not decrease. Lending and re-financing has tightened up a bit and good credit is still a big factor.