During a recent conversation with my credit repair expert, Doug Minor www.easycreditrelief.com, Doug informed me that promissory notes for 2nd lien holders during the short sale actually help establish and repair the credit score quicker.  Doug stated making payments on a promissory note will establish a new trade line, which often leads to additional credit being issued by other creditors.  In my experience most homeowners are unaware of this and this information could be the information the homeowner needed to decided whether or not to agree to the promissory note. 

Promissory Note:  A promissory note is also an unsecured note and a contract between the lender and borrower where the borrower agrees to pay the difference (or a percentage of the difference) between the amount owed and the sales price of the property.  This is usually presented during a short sale and can only be enforced if the borrower agrees in writing.  These notes are also negotiable after the short sale. 

If your a homeowner or Realtor looking for information on how a short sale, foreclosure, bankruptcy or debt collections effect credit, I highly recommend Doug Minor from www.easycreditrelief.com