I was wondering what it will say on the credit report after we short sale our house. We have not payed on either the first mortgage (Chase) or the second mortgage (Regions heloc) in over a year. Currently, the first shows as in pre-foreclosure. The heloc shows a charged-off balance of about $200,000. Though charged-off, it is still owned by the Regions bank. Provided the sale goes through, the first mortgage is waiving the small deficit. Regions, however, will make us sign a promissory note for 50% of the balance ($100,000) to be paid over 30 years.
I assume that whatever negative reporting that happens with the first will drop off after 7 years as we will be done with them at closing. But what about the heloc? Will the negative drop off after 7 years and from then on just show that we are current on a debt or will it be negative for the whole 30 years?
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