Short Sales and the new Hafa rules JUNE 1st 2012

[UplandCitizen]

I'm going through a HAFA short sale right now, with no 30 day late payments.  I have not paid October's bill because the Short Sale was to close by the 19th and extended a week.  I will let you know what happens.  This is with BofA and they told me they do not report a late payment until after 30 days. 

[UplandCitizen]

The buyers lender (also BoA) has not issued Loan Docs as of today.  Looks like I will have to pay October's mortgage inorder to avoid a 30 day late.   I'll keep you up to date when it closes and I get a FICO score update. 

[UplandCitizen]

So, my HAFA loan has not closed because of the buyers lender has not finished docs.  Should probably close this week but in order to avoid a 30 day late, I paid my October bill today.   

At least, if everything goes smoothly and we close in the next couple weeks, I will be able to close my HAFA short sale without any 30 day lates. 

[ycart]

You should ask BOA if they will report it as a settlement (even without lates that is bad for credit) ask them how it will b updated? Leet me know? Hope it goes well for u!

[UplandCitizen]

What could I suggest they report it as?

[UplandCitizen]

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@ycart wrote:
You should ask BOA if they will report it as a settlement (even without lates that is bad for credit) ask them how it will b updated? Leet me know? Hope it goes well for u!

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This is the link to the BoA website:

http://homeloanhelp.bankofamerica.com/en/cooperative-short-sale.html

If a short sale is completed on your property, we will report that your loan was “paid in full for less than the full balance.”

What is the ramification of this?

[UplandCitizen]

FYI:

I just completed the HAFA short sale on 11/20/12.  It was reported by BoA on December 1, 2012 with a derrogatory comment was made that affected by credit:

     EQ:  806 to 694

     TU:  811 to 677

Not sure why the TU dropped so much more that the EQ. 

[mf91745]

We completed a HAFA short sale w/ BofA in Nov 2012. The tradeline in our Experian report says,

Status: Paid in settlement.

Creditor's Statement: Account legally paid in full for less than full balance.

It also shows 30-150 days past due.

Is this consistent with BofA reporting "Account Status Code = 13"?

My TU score went from 730 to 660, but I had other baddies on my report.

[Jreed02]

Everyone,

I know I am bringing up something of a dead thread, but it was right on point with my question.

I am in a mega lawsuit with a large lender regarding a foreclosure.  They have dinged my credit with the code 'FS' on my monthly status's.  We are discussing settlment and for whatever reason, despite my having a legitimate predatory lending case against them, they refuse to delete the tradeline or mark it as paid in full.

What they will do is remove all mention of late payments.  But they insist on using a status code of "65 - Paid in full, foreclosure started."  (There would be no foreclosure judgment as part of the settlement, so no public record)

I know removing the monthly marks they've been hitting me with will greatly help my score, but I really have no idea what the code of 65 will do.  Does anyone know what damage that will do?  Will a lender look at that over the next two years and refuse me a mortgage as a result?

[mf91745]

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@Jreed02 wrote:

I know removing the monthly marks they've been hitting me with will greatly help my score, but I really have no idea what the code of 65 will do.  Does anyone know what damage that will do?  Will a lender look at that over the next two years and refuse me a mortgage as a result?

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I don't know what a foreclosure does to your score. I tried putting that into the credit simulator at CreditKarma.com and it didn't change my score at all.

Regardless of what it does to your score, when you're trying to get a mortgage, standard mortgage application forms ask you if have had foreclosures in the last N years. And of course mortgage brokers/loan officers might ask you verbally as well. You have to be able to say NO in order to qualify for nearly all mortgages. I understand that many (most?) lenders have automatic methods of checking an applicant's record for recent foreclosures.

So if you're interested in buying soon, I hope your lawsuit can completely wipe out the foreclosure off your records.

This is my understanding. I'm no professional...