REPAIRING CREDIT AFTER SHORT SALE

Anonymous · ‎07-30-2008

Good afternoon,

After 17 mos. of my house being on the market it was finally sold & closed on last Friday through a short sale! (YAAAHH) BUT...no payments were made on the house for the past 10 mos. After my ex moved out I depleted my entire savings trying to keep up with the payments and it was just impossible so hence the no payments for the last 10 mos. ( I moved into a townhouse that I could afford) here is my question...I had close to perfect credit, FICO score flucuated between 750-780...I have never been late on anything and I have had solid credit for the past 13 years...I just pulled all 3 credit reports and everything looks good except the 2 mortgages (obviously)...all 3 agencies had it reported as foreclosure process started, which NEVER happened so I wrote in to get that removed and I provided documentation from the mortgage lender that the accounts were satisfied and they were not going to report as a deficiency. How long does it take typically to hear back from them and also how badly is this going to hurt me for future loans? How can I get my FICO back to where it should be and how long will the late payments for those 2 accounts affect my credit score?

Any and all help is greatly appreciated.

Thank you!

fused · ‎07-30-2008

Can you copy/paste the derogatory mortgage accounts from your reports and post them here for us to view. Of course, leave out all personal information. I really need to see exactly how it's reporting before I can answer your questions.

Anonymous · ‎07-31-2008

Good morning,

Experian has it reported:

1st Mortgage

Status: Foreclosure proceedings started/Past due 180 days. $24,137 past due as of June 2008.

Creditor's Statement: Foreclosure proceedings started.

2nd Mortgage

Status: Paid, Closed/Past due 180 days. No Creditor's statement.

TransUnion has it reported:

1st Mortgage

Pay Status: >120 days past due<

Remark: Foreclosure initiated

2nd Mortgage

Pay Status: >120 days past due<

Remark: Closed >Maximum delinquency of 120+ days in 11/07 for $2,063.

Equifax has it reported:

1st Mortgage

Comments: Fannie Mae account, Foreclosure process started, 120+ days past due

2nd Mortgage

No comments but status is showing 120+ days past due. Shows paid and closed.

Thanks for your help, I appreciate it tremendously.

Anonymous · ‎07-31-2008

If you go over 120+ days on a mortgage it is considered, I'm very sad to say, a foreclosure. Especially in the eyes of FHA. FHA stipulates that you have to wait 3 years before you can be eligible for another mortgage under FHA guidelines.

Is there ANY way that you can work with the mortgage company to remove the 120? 120 is the cut-off for "foreclosure" status. If you could GW them to 90, it would be OODLES better!!

I'm really sorry to hear that you went through that. My heart honestly breaks for you!!

I truly wish you the best of luck on this!! I hope they agree to not report it!!!

Anonymous · ‎07-31-2008

Hi...thanks for the info...and yes, this has been such a nightmare! I've always been SO good and responsible about my credit and to have it screwed up now for atleast 7 years is really bothering me!

How do you propose that I get the mortgage company to report it differently?

What really irritates me is that we had a signed contract back in January of 2008 with the buyers but the mortgage company was so incredibly difficult and slow to deal with which resulted in 7 more months of no payments! My hands were completely tied in this situation and had to just take it as it came, thankfully I had an amazing realtor who stuck it thru to the end...still not helping my situation though.

I am not looking to go buy a house anytime soon however I am trying to get rid of my gas guzzling SUV and will need to get approved for an auto loan and with my credit looking like this I don't think it will be possible.

Thanks for your response and if you have any other suggestions I am ALL ears

Anonymous · ‎07-31-2008

Well, I'm no lender (though sometimes I wish I WAS!), but for one thing, there's a LOT of people falling victim to foreclosure. So I think you're not in the minority so I don't think that carries the credit stigma is did YEARS ago.

Also, borrowing $5-15K on a vehicle isn't the same thing as borrowing $100-200K for a home. I'd think that there would be a significant difference, there.

I think that if you just keep paying everything else on time, and rebuild like the rest of us, while you'd still have to wait (unless the mortgage company pulls through for you) the 3 years for a new home, your credit should recover well enough to buy a car.

Hopefully, someone else will chime in with their experiences ... I know there's several people here who have been (or ARE going through) through what are you now. Like I said, you're REALLY not the only one.

For whatever it's worth, I'll be praying for you!!!!

fused · ‎07-31-2008

Have you pulled your FICO scores yet?

Anonymous · ‎07-31-2008

No, I haven't...I was thinking that I should wait until after the disputes are corrected... however, I received a message back from TU today regarding the incoorect info. and they changed my report to now say : SENT TO COLLECTION...I don't understand! We signed papers on Friday, July 25th and I'm thinking that Citimortgage hasn't received the funding yet? So I filed and mailed out another dispute with the paperwork to back up my case...so the battle continues...as I'm sure it will be a lengthy one.

Very frustrating.

Do you think I should pull my FICO scores now?

fused · ‎07-31-2008

PLATNMGIRL76 wrote:

No, I haven't...I was thinking that I should wait until after the disputes are corrected... however, I received a message back from TU today regarding the incoorect info. and they changed my report to now say : SENT TO COLLECTION...I don't understand! We signed papers on Friday, July 25th and I'm thinking that Citimortgage hasn't received the funding yet? So I filed and mailed out another dispute with the paperwork to back up my case...so the battle continues...as I'm sure it will be a lengthy one.

Very frustrating.

Do you think I should pull my FICO scores now?

Since you already have a derogatory status reporting, the damage has probably been done. What will be interesting to see is how bad the hit will be on EX because it shows a sizable balance. The change on TU doesn't help, in FICO scoring a serious deorg is a serious derog. In other words a paid foreclosure is just as bad as a paid collection. The one thing I would question is this, if there's a zero balance on TU, then why is this being sent off to collections. You will have to look into this, this doesn't seem right.