Affect On Credit Of Seller When Doing A Short Sale
Sometimes, I think we gloss over the negative affects of a Short Sale. Deficiency Judgments and 1099 Reporting - notwithstanding, I think its important to give potential short sale prospects accurate information about how the process will affect their credit.
1) Late Payments While Waiting for Approval:
Most Lenders will report any late payments to the three national credit bureaus, which cannot be removed (if you were indeed late).
2) Default Notices - if it has gotten to or gets to that Point, any default notices, will remain on the credit report for a period of time (any one know how long?)
3) The Short Sale on The Credit Report
The way Lenders normally report the completion of a Short Sale is that they will report that the mortgage was "paid less than owed", "pre-foreclosure short sale", or sometimes "zero balance". Each company reports their own way, so it is hard to tell upfront what it will say.
1) Late Payments While Waiting for Approval:
Most Lenders will report any late payments to the three national credit bureaus, which cannot be removed (if you were indeed late).
2) Default Notices - if it has gotten to or gets to that Point, any default notices, will remain on the credit report for a period of time (any one know how long?)
3) The Short Sale on The Credit Report
The way Lenders normally report the completion of a Short Sale is that they will report that the mortgage was "paid less than owed", "pre-foreclosure short sale", or sometimes "zero balance". Each company reports their own way, so it is hard to tell upfront what it will say.
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Methinks you worry too much.
[addsig]