whats got the least impact on credit rating?

samara

hi
i have a rental property im in the process of selling,and its in negative equity by 20k.
I don t believe this will ever recover its price (bought 2007),enough to clear the mortgage of 118k.
I ve spoken to my lender and the only option they have offered me is to go into a negative equity agreement,which means there is a payment plan in place which would enable me to complete on a sale.
Being the only option they offered,and i could not think of a better one,I was and still am thinking its the only way out.

I was wondering what would have the least effect on my credit score,using this type of agreement,or getting a loan for part of it,and paying some off in savings?

Obviously,its going to impact me for a long time,and make it difficult/impossible to do certain things in life,ie,change rental properties,phone contracts etc,so am trying to figure out the kindest option for me.


Thanks in advance for any opinions.

[Deleted User]

Lenders look at your indebtedness, not your credit score, so there is little difference.

If the agreement shows as a default or AP, that is best avoided.

Otherwise, go to the cheapest option.