Wednesday, May 26, 2010

What is a mortgage loan forgiveness? How does it affect my credit?

%26quot;Foregiveness%26quot; is a rather gentle and kind term for what you describe. A lender sometimes will agree to what is called a 'short sale' in order to avoid the expenses of a foreclosure. If you do not pay the difference between what you owe and what the lender obtains for the house, you remain liable for this debt, and non-payment will definitely show up on your credit report.

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