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Profile picture for bandana6978

Im doing a short sale N have mortgage ins.The bank WILL be paid N full so why a bad credit mark

I was told we can short sale our home but there will be a statement on our credit  report that says we sold our home for less then we owe and we will not be able to purchase another.
  • January 07 2012 - US
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Answers (7)

Best Answer

Profile picture for tonyhaven
Not every single Short Sale will mark a negative on your credit report. Short Sale actually saves your credit. It depends on what the apporval letter says. For example when I work a short sale I work with the bank for them to report it to the credit agency as "Paid in full" or Satisified in full". The reason you cannot purchase for 18-24 months after a Short Sale is most people in a short sale need to fix something in their credit. The lenders want to see you have fixed your credit and whatever hardship put you into a Short Sale is resolved and will not reoccur.
  • January 07 2012
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Robert,

Any lender that has entered "paid in full" or "Satisfied in Full" when it wasn't should be prosecuted for fraud!
  • January 07 2012
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Profile picture for SoCal Engr
Or...

I have auto insurance, so everyone I hit is taken care of. So, why is everyone worried about how many accidents I cause?
  • January 07 2012
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Profile picture for the_country_hick
I should have added one thing. Not all mortgage insurers will pay 100% on the dollar. Some are in bad financial shape. AIG was one such company that needed to be bailed out and then sold off its more profitable parts because of bad mortgages. Insurance is only as solid as the company behind it. Anyone who has ever dealt with an insurance company knows they try everything possible not to pay out anything.
  • January 07 2012
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Profile picture for the_country_hick
Do you expect to be able to financially hurt a bank without any ramifications?

When you do something that hurts someone else you should pay for it. Sadly in this case you only get a bad credit rating.
  • January 07 2012
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Because YOU are not paying back what YOU agreed to pay back.

Lenders use credit reports to determine how likely you are to follow through with a contract based on your past actions.

Fool me once shame on you, fool me twice shame on me...
  • January 07 2012
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Seriously?

If you lent a friend $100 and he only pays you back $75 and says that's all I am giving you for the $100 you lent me!   Would you lend him another $100 next week?
  • January 07 2012
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