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Member
esg
Posts: 21
Registered: ‎10-01-2012
0

Re: 2012 (current info) on the impact of a short sale without late payments.

Be careful it doesn't change all the numbers by making a payment, thus voiding the bank's approval which is based on the existing numbers. This is why I was told not to make a payment!! If they have to re-do the paperwork it might delay you more. I also heard that sometimes the banks hold on to the payment in this situation and won't apply it anyway, but take the money later... Just passing on what I've heard from my realtor (and from Chase bank about the numbers changing.)

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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: 2012 (current info) on the impact of a short sale without late payments.


UplandCitizen wrote:

The closing was extended to October 31, 2012 and the Buyer lender BoA have not submitted final loan docs as of 10/25/12.  Looks like I will have to pay October's mortgage payment inorder to avoid a 30 day late mark since I doubt it will be funded by 10/30 with a weekend in between.  :smileysad: 


Lates + short sell is bad.....   pay the mortgage for october, even if it means that they have to redo the paperwork.

 

I'm glad you are paying attention...   I had to keep myself from paying October's payment since I was refinancing...  payment was due on the 15th, I signed docs on the 19th, the refi was funded on the 22nd...  I checked my online account just to be sure... I was more than ready to pay Octobers payment if something had gone wrong on the funding


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New Contributor
UplandCitizen
Posts: 54
Registered: ‎10-18-2012
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Re: 2012 (current info) on the impact of a short sale without late payments.

[ Edited ]

esg wrote:

Be careful it doesn't change all the numbers by making a payment, thus voiding the bank's approval which is based on the existing numbers. This is why I was told not to make a payment!! If they have to re-do the paperwork it might delay you more. I also heard that sometimes the banks hold on to the payment in this situation and won't apply it anyway, but take the money later... Just passing on what I've heard from my realtor (and from Chase bank about the numbers changing.)


Esg:  I spoke to my my bank also BoA and they said they report 30 day lates after the 30th day.  So, to avoid a 30 day late pay, they advised that I would need to pay by October 30, 2012.  I spoke to the short sale specialist and they advised that if I pay it will not affect the numbers.  One person said, if there appears to be an over pay, they would return some money, which I doubt because most of the payment would be in interest anyways.

EQ: 806 (10/10/2012)
TU: 811 (11/25/2012)

After Short Sale 11/20/12:
EQ: 694 (12/1/2012)
TU: 677 (12/5/2012)
New Contributor
UplandCitizen
Posts: 54
Registered: ‎10-18-2012
0

Re: 2012 (current info) on the impact of a short sale without late payments.

[ Edited ]

webhopper wrote:

UplandCitizen wrote:

The closing was extended to October 31, 2012 and the Buyer lender BoA have not submitted final loan docs as of 10/25/12.  Looks like I will have to pay October's mortgage payment inorder to avoid a 30 day late mark since I doubt it will be funded by 10/30 with a weekend in between.  :smileysad: 


Lates + short sell is bad.....   pay the mortgage for october, even if it means that they have to redo the paperwork.

 

I'm glad you are paying attention...   I had to keep myself from paying October's payment since I was refinancing...  payment was due on the 15th, I signed docs on the 19th, the refi was funded on the 22nd...  I checked my online account just to be sure... I was more than ready to pay Octobers payment if something had gone wrong on the funding


I agree late plus short sale would be bad.  I want my short sale to have as small of an impact as possible.  Plus, I want to be able to qualify for an FHA loan as soon as possible.  FYI, BoA agreed to waive the late payment fee, which was nice of them.  They probably realize that I've never been late and know that I am going through a short sale.  They said as long as I take it in before 5 pm on 10/30 I should be okay.

EQ: 806 (10/10/2012)
TU: 811 (11/25/2012)

After Short Sale 11/20/12:
EQ: 694 (12/1/2012)
TU: 677 (12/5/2012)
Member
esg
Posts: 21
Registered: ‎10-01-2012
0

Re: 2012 (current info) on the impact of a short sale without late payments.

@Upland:

Thanks for the info. I wonder why Chase told me it could jeopardize the agreement. It would be in their interest you would think to get the payment! It kills me not to make the payment. I have never missed one and my credit score is in the high 700's right now. I know the short sale is going to ding me big time, especially since it seems people with higher scores get more points knocked off. (Maybe since people with lower scores have not as far to "go down"?).

 

My escrow is not meant to close until December 5th, so looks like a 60 days late is inevitable. My realtor is adamant about me not paying and possibly causing more delay. I really need to get this sale done by the end of the year for the tax exemption, and before Dec. 10 property taxes are due is even better!

 

All my eggs are in one basket at this point. If the buyers can't get their loan funded I am in a worse predicament. I am getting so discouraged by the conflicting information, and not wanting to make a "wrong move" that I am beginning to not care what happens to my score...it's going way down either way :-(

New Contributor
UplandCitizen
Posts: 54
Registered: ‎10-18-2012
0

Re: 2012 (current info) on the impact of a short sale without late payments.

[ Edited ]

Esg:  I have an 806 score on MyFico so I will definitely be able to tell you the point drops without a 30 day late.  If I were you, I would make the first payment (if you have the resources) and holdoff on the second payment as long as possible (kind of like what I'm doing) to see if you can close  before a 30 day late. 

 

I read that one 30 day late will affect a person with a high 700 score about 100 points. 

 

A short sale without a late payment I think will affect that same high 700 score between 100 to 150. 

 

Late plus a short sale will be over 200 points. 

 

Plus a short sale without a late makes you eligible for at least an FHA loan immediately. 

EQ: 806 (10/10/2012)
TU: 811 (11/25/2012)

After Short Sale 11/20/12:
EQ: 694 (12/1/2012)
TU: 677 (12/5/2012)
Member
esg
Posts: 21
Registered: ‎10-01-2012
0

Re: 2012 (current info) on the impact of a short sale without late payments.

THanks for the info. That's what I planned on doing, until I spoke with the bank on the 15th. I am going to try to speak directly with my "closer" to see what they say.

New Contributor
UplandCitizen
Posts: 54
Registered: ‎10-18-2012
0

Re: 2012 (current info) on the impact of a short sale without late payments.

Esg:  You made it this far without missing a payment, I would encourage you not to get a 30 day late if you have the resources.  If you have a 30 day late and a short sale, you will not be eligible to buy another home for almost 3 years, at least that is what I read, it could be 2.   

EQ: 806 (10/10/2012)
TU: 811 (11/25/2012)

After Short Sale 11/20/12:
EQ: 694 (12/1/2012)
TU: 677 (12/5/2012)
New Contributor
UplandCitizen
Posts: 54
Registered: ‎10-18-2012
0

Re: 2012 (current info) on the impact of a short sale without late payments.

Esg:  I know this is implied in my prior posts, but I paid the first mortgage after the short sale was approved and it did not affect the closing.  The numbers stayed the same.  Now, I'm going to probably pay the second time and I know from experience and speaking to the BoA that it will not affect the numbers. 

EQ: 806 (10/10/2012)
TU: 811 (11/25/2012)

After Short Sale 11/20/12:
EQ: 694 (12/1/2012)
TU: 677 (12/5/2012)
New Contributor
UplandCitizen
Posts: 54
Registered: ‎10-18-2012
0

Re: 2012 (current info) on the impact of a short sale without late payments.

I am disappointed that the close did not occur as it was supposed to on the 10/19 and probably won't close for another week.    I did not want to risk getting a 30 day late just prior to the close of my short sale so I just made my October payment.   I will let you all know the impact of the short sale on myfico score.

EQ: 806 (10/10/2012)
TU: 811 (11/25/2012)

After Short Sale 11/20/12:
EQ: 694 (12/1/2012)
TU: 677 (12/5/2012)

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