Yah. That's such a bummer. I am in a similiar situation as my sale is due to close in the first few days of December which means a November payment too!! Grrr. I wish some one could tell me what the impact was on their score after staying current throughout the short sale. I just don't know anyone who has done it. I am convinced that the damage is from the late payments. I learned in an article on "how banks report short sales" that the banks really don't have a place to specify "short sale" and the comment or status of "settled for less than owed" is not what hits your score. A close friend of mine got "paid as agreed" for his short sale and it appears the drop is in score is ONLY from the lates.
My issue is I can scrape together October (painfully), but I know November will be really difficult financially for me to pay. I have asked my ex to pitch in for November, but he does not want to "throw away" any more money, as he's out of work. I wonder about the difference between a 30 day and a 60 day late. I suspect it's not huge. It's all or nothing for me at this point. I still have two days to decide what to do. I can pay October and proay my escrow closes before Nov. 30. Or just take the 60 day hit and work on re-building over the next few years.
FYI, BoA told me that the payment had to be made by 10/30 to avoid a 30 day late. I know October has 31 days so in order to avoid a 30 day late, payment would probably have to be made by tomorrow.
I just saw the article again about late payments posted in one of the forums. 30 day late = 100 point decline on a high 700 score. Debt settlement = 100 to 110 decline. If you do both almost 200 point decline.
Chase told me this morning tha 8pm EST online payment on the 31st is the deadline, but i see your point about the 30 day thing. What's interesting is my friend went through an aweful divorce and TWO short sales. One of them went on for almost a year where no payments were made. The other one about 6 months. His score went from the mid 700's to 620. (120 point drop for two short sales, and over 120+ days delinquent). This tell me that the scoring system is simply a mystery! ??? All I can be sure of is that late payments hurt.
Ok, that was painful! I just emptied my bank account and made one last payment! Ouch. I sure hope it's worth it. Now I am pushing agents to close before November 30th. Wish me luck, and be sure to update me after you close and let me know how it turns out for you.
I feel your pain. My wife is so dissappointed that we just had to pay the mortgage, especially, since we are paying rent on a new home. She probably would have preferred that we miss the payment. Hope this pays off.
I found a link to how late payments and then short sales affect credit. If you notice a 30 day late has almost as much affect on credit as a short sale. So, if you get a 30 day late than get a short sale, start at the 680 score to see the affect.
Yah, I've seen this chart a few times. I wasn't clear if it was cummulative or not. Like if you miss a payment, your score drops to 620, then you have a short sale and it's affected less because your score is already lower?? It will be interesting to see how it plays out.
I don't think the chart is cummulative. For, example if you have a 780 and get a 30 day late it goes to approximately 680. If you have a 780 and have short sale without any lates is goes to approx. 660.
However, if you have a 780 and then have a 30 day late it goes approximately 680. Then if you have a short sale, you start at the 680 range and it goes down approximately 620.
The affect would be that if you do not have any late payment before a short sale (with a start of 780), you essentially have a score of 660 which I believe immediately qualifies for an FHA loan.
Am I right?
Sounds good to me. I believe the moral here is, make payments no matter how painful they are!
It shows you are still in the fight instead of just giving up. You will be better off in the long run. Hang in there!