topic Re: Mortgage after short sale in Mortgage Loans

Mortgage after short sale

Anonymous — Fri, 21 May 2010 21:21:03 GMT

How do lenders determin if a applicant had a short sale in the past?

Individual had a discharge bankruptcy that resulted in all mortgage reporting to credit report to stop prior to short sale. 6 months after the sale there is still no indication on credit report about the sale just the account listed as closed/discharged zero balance.

If the individual has no indication of the short sale can they get a new conventional mortgage with out any waiting period.

Discharge occured more than 3 years ago, so their is no mortgage reporting for at least 3 years.

Re: Mortgage after short sale

ShanetheMortgageMan — Fri, 21 May 2010 22:01:14 GMT

Was the mortgage included in the BK? If so, 3 year waiting period from the date the lender legally took back the home. If it was not included in the BK the lender can check MERS (if the mortgage was registered on it) or will go by the credit reporting history.

Re: Mortgage after short sale

Anonymous — Fri, 21 May 2010 23:22:03 GMT

Mortgage included in BK. As stated there is no credit history reported on the credit reports after BK.

Re: Mortgage after short sale

ShanetheMortgageMan — Sat, 22 May 2010 17:44:31 GMT

It'd go by the date the lender repo'd the home. Copy of that deed (from recorder's office) most likely will be needed.

Re: Mortgage after short sale

Anonymous — Sat, 22 May 2010 22:22:50 GMT

The property was never repoed or foreclosed on, the deed never went to lender the property was sold.

Re: Mortgage after short sale

ShanetheMortgageMan — Sun, 23 May 2010 00:32:40 GMT

Not sure where my mind was when I made the last response. The lender will want to know what eventually happened to that mortgage, and may think it was included in the BK/foreclosed by the lender. A copy of the Final HUD-1 from the sale would prove to them the home wasn't foreclosed on by the lender, however when they realize the missing mortgage history they'll ask for the payment history to be completed and this would require the borrower calling the lender and getting it in writing. They'll consider it a short sale unless there was also 120 day late payment or a notice of default filed on the home, then in that situation they'd consider it as a foreclosure and the seasoning would start from the short sale date.