My home is currently worth $55,000 but we owe $127,000. Our home was purchased in 2006 on a Conventional, 30 year 6.5% loan. The loan is not a Fannie or Freddie Mac owned loan. Our loan-to-value ratio is 192%.
We are planning to short sale. However, we are current on all of our payments, but the house is a 2BR/1BA home with a 1 car garage (1050 sq ft) that we have been trying to rent in order to avoid a short sale, but have not received any offers. I think we are priced too high for what we have.
So we are planning on doing a short sale. If we have a credit score of 700, how much will a short sale affect us to the point of preventing us from getting a VA Home Loan later? I am a military veteran.