I bought a home prior to getting married and need to know will a short sale effect my husband's credit?
Question Details:
I bought a home in AZ a few years ago. Due to the economy, I relocated to a new city where I met my husband. After we got married, we bought a new home together, and were planning on renting out my house until the market rebound. In March, I started another new job, making significantly less money, and I am unable to keep up with the payments. We spoke to someone who recommended trying to do a short sale. Will a short sale effect my husbands credit, and will they check his finances? He is not on the mortgage/title.
A mortgage default is only chargable against the person making the mortgage. the reason for this is becasue a contract may only be enforced against the parties to the agreement. if your husband is not a party to the mortgage as you indicate there is no basis for your husband to be responsible for the payments and therefore, his credit is not in jeopardy. If you do a short sale you will want to hire a real estate agent and a person to help you negotiate the short sale. the short sale will affect your creidt, but not as bad as a foreclosure. i also suggest that you hire a lawyer to help you in connection with the sale and make sure all the right people are paid off so you do not have any other creditors relating to the mortgage chasing you for a deficiency judgment - i.e. a second mortgage holder of the property or other lien.

Are you a lawyer?
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