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Replies (9)
- Abdullah Al-Mamoon, "youhomesold"
- Contributions:25
If the short sale is successful does the bank still report to the credit agencies about the short sale?
- Natasha Kennedy, "Natasha Kennedy"
- Contributions:487
Short sale is usually ruins your credit history. According to study made by a settlement attorney in DC it ruins for 5-7 years. The foreclouse ruins it for 10 years. In foreclosure the bank has to hire a lawer and take your house away from you because you didn't pay. Short sale happens because your life sutuation has changed and you would love to pay, but you can't and you have to sell your house. You are cooperating.
- Michael Emery, "MikeEmery"
- Contributions:7298
The short sale is on your credit score for up to 7 years. You might still be able to buy a home in as little as 2 to 3 years. But you can't deny the impact short sales and foreclosures can have on your credit score.
- Edwin Gerace, "edwingerace"
- Contributions:262
MY 2 Cents on Short Sales
1- An agent that wants to survive in 2010 and beyond better get thier hands around the concept or know how to refer buyers and sellers to agents that do.
2- A consumer that has had a financial change in life, could qualify for a short sale situation.
3- Short Sale Process is not easy but rewarding when you help someone get out of some debt that is sinking them and the same time you get a buyer into a home most of the time at a good deal.
4-Short Sale is a game for buyers,sellers and agents. There is 1 key task: Managing Expectations. Comunicate Communicate Communicate.
5-Consumer and Realtor, I suggest you get a short sale specialist that you can trust helping you through the transaction. I have one and she does great work ( works around the country). Example You call 1-800-BANK where she or an attourny are calling the person that makes the decisions due knowing the right questions to ask and past expierences.
6- I have done 4-6 of them this year, 2 have closed and one more will go under contract this week. I have had 1 fall apart and it was NO ones fault but the SELLER.
7- Understand that a seller is giving up the home, and there is NO benifit for them to work harder than they want to ( Race againest the foreclosure clock is all). They make no money if the short sale is done.
Have a great day
- Dorlynne Wulf, "Dorlynne Wulf"
- Contributions:5
If you want to survive in Real Estate today (and in the future) either learn to do Short Sales or refer them to someone that does. Excellent advice Edwin.
- Natasha Kennedy, "Natasha Kennedy"
- Contributions:487
I agree with Edwin on evry point.
- Brent Mendelson, "EastCoastMortgages"
- Contributions:61
I have seen it both ways as far as reporting on someones credit but assume that yes it will be there and dramatically lower your score for years. Just an opinion but as we get some time away from the mess now I think lenders may relax the rules on someone buying again. Just a hunch. Know also that the lender who short sells your home can send you a 1099 for the forgiven amount and the IRS will consider it income. That seems to be left out quite a bit according to people who have been thru them. Still better all around then a foreclosure.
- Natasha Kennedy, "Natasha Kennedy"
- Contributions:487
I think the shortage is not sondier as income till the end of this year. Still need to be checked with the tax adviser.
- Rob Alley, "roballeyrealtor"
- Contributions:53
Credit bureau scores are often called "FICO scores" because most credit bureau scores used in the U.S. are produced from software developed by Fair Isaac and Company. FICO scores are provided to lenders by the major credit reporting agencies.
Fair Isaac released a report that says credit scores are affected about the same, whether a seller does a short sale or foreclosure. Fair Issac says the average points lost on a FICO score are as follows:
- 30 days late: 40 to 110 points
- 90 days late: 70 to 135 points
- Foreclosure, short sale or deed-in-lieu: 85 to 160
- Bankruptcy: 130 to 240
What is a short sale? Here is some information about it
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- 5.0/5.0
- (8 reviews)
Contributions:487A short sale is an arrangement with your lender in which you are permitted to sell the property for less than you owe. This is a method of disposing of your home without having the lender foreclose on you. In many cases the lender pays your closing cost and your realtor's commission. Not all lenders papprove a short sale. They are in the business of lending money, not owning houses. The decision depends on a number of factors: Where is your house? How much loss will the lender suffer? What is the possibility that an investor would buy the property at a foreclosure sale? Each lender has its own requirements. You will need to prepare a comprehensive letter explaining why you are requesting the short sale. It is much like the paperwork you completed when you applied for the loan, only in reverse. Now you must prove to your lender that you are in financial distress and can't afford the monthly payments. The short-sale process often works but is complicated, time-consuming and uncertain, which is why choosing the proper agent is critical. It could save you time, money and your credit history. Interview your agent before hiring him or her. Some agents don't do short sales at all, because it's not guaranteed they will get paid. If you start early, before you miss your payments and before your lender notifies the credit-reporting companies, you are ahead of game and have a better chance of succeeding.
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