topic Re: Short Sale ? in Mortgage Loans

Short Sale ?

Booner72 — Wed, 22 Jun 2011 22:51:30 GMT

We signed the "arm's length affidavit" today (BofA) - So the realtor says it's looking good and looking soon. How long now?

My middle FICO score is 624. How many points will it cost when she pulls my credit, possibly as soon as tomorrow? Will I make it?

Thanks in Advance.

Re: Short Sale ?

Booner72 — Thu, 23 Jun 2011 17:34:06 GMT

Am I posting too much?

Re: Short Sale ?

ShanetheMortgageMan — Thu, 23 Jun 2011 17:38:27 GMT

No you aren't, but no one really knows how long exactly it'll take. BofA has a short process & a long process from what I've seen - the usage of the system called Equator has sped things up but I've still heard some short sales taking quite awhile. I am not a real estate expert, so I don't get updated on when each milestone of my clients offers get accepted/countered/etc. other than what they tell me.

Re: Short Sale ?

Lel — Thu, 23 Jun 2011 17:44:54 GMT

A mortgage inquiry doesn't affect scoring for 30 days after the inquiry is made. So if the updated credit score is adequate and you are able to close soon, then you're probably going to be okay.

But like Shane mentioned, short sales can take a while, especially if the short sale property has more than one outstanding mortgage. I suppose it is possible that if the sale process takes a very long time, then it may be necessary for the lender to pull your credit again. If so, then the upcoming inquiry will be factored into your score. But it is not possible to predict with any degree of confidence how much your score might change, if at all.

Re: Short Sale ?

Booner72 — Thu, 23 Jun 2011 18:46:36 GMT

Thanks for your replies. We aren't pulling credit again until we know if the bank accepts. Just worried to death that 624 won't cut it by 1-2 points, you know?

Hopefully I'll get a few more next week when revolving reports, down to 29% - but all the accounts have balances. Even my stupid mastercard charges 7.00 a month that hits when the statement hits, so no way to zero it out unless I mail in a check in advance. Craphole card but at least I've had it since 07 and have 100% payments on time.

Re: Short Sale ?

Booner72 — Fri, 24 Jun 2011 04:21:46 GMT

Talked to our LO today for over an hour. She assures me I can get a loan by the end of the year. So now I am going to get that 401K money out and pay off all my bills to ZERO. Then save the rest for closing/down payment/reserves if needed, and a cheapo 1000 dollar 1980'ish pickup for my husband to drive, as our truck is a gas hog. I drive a 94 pathfinder and LOVE IT LOVE IT LOVE IT. No payment, cheap gas. Going to try to convince the father to put me on as an AU, since his credit score is over 800. Does anyone know if they will run my credit to be an AU? Your credit won't be looked at but the score your father might have is not looked at either as far as being added as an AU. There are though several things to know about being added as an AU.

Yes it can help you IF the account is older than any of yours, IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. You will inherit the entire history of this account. One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind.

Complained to her about our realtor who never returns emails. Being the "property virgin" that I am, I feel I need a tad bit more attention. If the short sale house doesn't work out, then we are going to go the homepath direction. Sweet houses around here thru them.

Tomorrow I'm finding out how I was "served" w/ that judgment that the courthouse is reporting 2 to credit reports, but not title company. I know for a fact no one hand delivered anything. If I can swing it, I'm going to try to get the Judge who signed it to agree to "vacate" or whatever so it doesn't report anymore. It is fully satified and reports as such. If anyone has any legal tips that would be great.

Lastly, since ya'll are my new BFF's , I'll say I just went ape on my 13 year old for leaving the dogs in all day. FIVE piles of puke (and other bodily fluids). GRRRR!!!!!!!!!!!!! Luckily I have the SpotBot Bissel or he would really be dead.

Re: Short Sale ?

Jazzzy — Fri, 24 Jun 2011 02:01:50 GMT

@Booner72 wrote:
We signed the "arm's length affidavit" today (BofA) - So the realtor says it's looking good and looking soon. How long now?

My middle FICO score is 624. How many points will it cost when she pulls my credit, possibly as soon as tomorrow? Will I make it?

Thanks in Advance.

Do you know how many mortgages are on the property? That's where the system often breaks down...the banks start bickering about who gets what.

My son sat for months with an offer in on a short sale. The 2nd (approx $10,000) wasn't willing to walk away with a smaller portion, so the 1st simply foreclosed and wiped out the 2nd.

My son eventually bought the property after it went into foreclosure...for even less $$$. There had been an accepted offer for approx $550k, and he waited through the failed short sale and bought it for $480k out of foreclosure.

What made it all work was a realtor who was willing to do the leg work and deal with the bank throughout both offers. She really earned her commission.

Re: Short Sale ?

Booner72 — Fri, 24 Jun 2011 03:53:41 GMT

Hi, Lynette - I'm happy your son's deal turned out so good. There is only one mortgage on the house. The only hiccup (aside from the bank saying NO) is that the seller has about 1000.00 worth of judgment against him from the HOA. Realtor says bank will pay that. We'll see. It showed up when the title co. ran us all.

Re: Short Sale ?

Booner72 — Fri, 24 Jun 2011 15:56:53 GMT

My dad is the most responsible money person on earth that I know. I wish I would have inherited that gene from him. Hopefully he will feel guilty due to not raising me right and let me do it. Ha ha Just kidding.

L.O. originally told me to pay down First Premier to 50 and JCPenney to 150. Well, that was backwards she tells me yesterday. UGH! She also says that the FICO scores "don't like" First Premier cards, even w/ perfect payment since '07. What can that mean?

I hope to high heaven that by paying off the utilization I will get enough points. I'm at 29% now and hopefully will get a score boost on Saturday. I found the forms to get the judgment vacated, but who knows. Luckily the Attorney Office is 5-6 hours from my county. They probably would send someone from the local collection agency to represent themselves. They're pretty nasty. Still wondering if being served via certified mail was enough. Found lots of good info yesterday on vacating judgments here at MYFICO. Also read that it might not even affect the score. So who the heck knows at this point. FICO simulator says I'll go up by paying off revolving as my "best action", but also adds in a 24 month time period of clean credit. LO did say we'd get approved at current score, but would have to "broker it out". Got one of my threatening letters back yesterday - the medical clinic refused it because I had put "HIPPA COMPLIANCE OFFICE" on the envelope. They said "wrong address."

Another thing LO said was that the CRA's are only "open" once a month to report balances from credit cards. I know that is NOT right information. It just can't be, right?

Re: Short Sale ?

Booner72 — Tue, 12 Jul 2011 01:10:20 GMT

On 7/7/11 I got an email that the "Value" is back on the short sale "And they are 100% fine with it." "Now we just need the investor to sign off and then you will have your letter. Then you can start on your loan. It usually takes 48 hours to hear back about the timeline. I will call Monday."

I thought for SURE I would hear something today, since it is Monday!! Also, does that mean I should be hearing any time now that they accepted our offer, or that I will hear another b.s. story about yet another waiting period of time. What is the last thing these people do in this process before I get the go ahead to start the loan process?

I know this is pretty fast for a short sale - but when we originally signed he said we would close by 7/31/11. The papers say 7/15/11 - so I suppose we could walk this friday if we want to give up?

I'm so physically sick from this situation.

Re: Short Sale ?

Booner72 — Tue, 12 Jul 2011 20:55:53 GMT

OK - I think I'm ready to look for other places. My paperwork I signed said we would close by 7/15/11. Obviously that is not even close to happening.

Can I walk away with my earnest money on Friday?

Re: Short Sale ?

ShanetheMortgageMan — Thu, 14 Jul 2011 04:21:43 GMT

You'd have to consult with your real estate agent since everything will be spelled out in your purchase contract. Realize that short sales can take forever, this is all perfectly normal. When they say it takes a specific amount of time for the seller's bank to get back to you... multiply that by 5.

Re: Short Sale ?

Booner72 — Sun, 17 Jul 2011 13:58:43 GMT

Still waiting by the way. The seller owes almost 1000.00 in HOA fees. Realtor and title company both told me the bank would pay this. Have you heard of that before?

I am willing to pay that if it makes this deal go quicker - I'd hate to have bank accept offer but then a huge hold up because the seller can't/won't pay HOA.

That auction date is less than 30 days away. My realtor told me Fri that the investor is probably at his yacht club which is why it is taking so long to get the final doc signed after the bank has already said they were fine with our offer.

Re: Short Sale ?

Anonymous — Sun, 17 Jul 2011 15:36:43 GMT

ShortSales are definitely frustrating. I am over 5 months since we signed our contract. We made an offer, bank came bank and counter offered at a higher price than listing price, then we counter offered that offer. The bank came back with a number that said it was their lowest they could accept. We agreed and signed an addendum to our contract with new price and close by date. This was on 7/5. My lender is waiting for the actual written approval before we do appraisal. As of today we still have not gotten approval letter. If the house was not such a good deal I would have walked a long time ago. During this whole process my lease had run out and I had to move to another house which I am renting month to month for an inflated price. VERY Frustrating.

Long story short..... You must be extremely patient during the short sale process or you will go nuts!! lol.

Re: Short Sale ?

Booner72 — Sun, 17 Jul 2011 15:44:35 GMT

Go nuts? ?? I've already gone, and here I am in all of my mad glory. Thanks for your support!