How is Your Short Sale Being Reported on Your Credit Report?

(info courtesy of Barbara Van Duyn, First Priority Financial – Folsom, CA)

“How the short sale is being reported in your credit history is a big deal. A key step in the pre-approval process by the loan officer is to submit a loan application and credit report to Fannie Mae for an automated underwriting decision called “DU”. If the short sale is not being reported correctly on a credit report and needs to be fixed, the wait period will start over from the date of the fix. Its unfortunate and I’ve seen it happen.

Best advice for anyone who did a short sale … a couple months after the change of ownership, allow a loan officer to run your credit to ensure all loans are reporting as paid off or settled with NO BALANCES remaining or listed as “charged off’. If there is, you want to get your credit history fixed sooner than later.”

Great advice! Thank you Barbara!

Not All Listing Agents Deserve A Bad Rap

Yes, it’s true, some listing agents are non responsive and have zero accountability. They deserve to lose all their listings and are fit to be tied when they don’t respond to confirm that an offer has been submitted.

I’ve been on the side of the coin when I have submitted an offer for a buyer (a very strong offer I might add), got no confirmation of receipt, or even worse, got confirmation, a counter, a rejection, and then the listing closed for less than the offer I submitted <yesiwasmiffed>.

But do we really need to label this behavior exclusively as “listing agent” behavior? What about neglect and lack of accountability on the part of the buyer’s agent as well?

For example, this is how my day started (one day this week):

agent: “Hello my name is George from ABC Realty and I’m calling about your listing at 123 Main st? I just have a few questions.”
me: “Sure, did you say you are an agent?”
agent: “Yes”
me: “Do you have access to MLS?”
agent: “Yes”
me: “OK, how can I help you?”
agent: “So, is there a lockbox?”
me: “I don’t think so. Does MLS say there is a lockbox?”
agent: “No”
me: “I didn’t think so. Are you trying to show it?”
agent: “Yes”
me: “What does MLS say?”
agent: “Um, I am to call Julie?”
me: “Yes, make an appt with the seller per MLS instructions.”
agent: “Ok, thank you”
me: “Your welcome Geroge, have a nice day.”

Needless to say, my voicemail is very specific about how to best accomplish what you might need from me. Whether you are a buyer’s agent, buyer, seller, friend, or bill collector, I think I’ve got you all covered.

But I’m not perfect and am not professing to be. I’m merely stating that I have taken measures to attempt to address the concerns of various potential callers when I am not immediately available to take the call. I also update MLS frequently (not 100%, but more than 80%), so all property info necessary to make an offer (or at least a decision) is there.

So what’s my beef with buyer’s agents? It seems that we have a disconnect. I would say, because I have taken measures to give you what you need before you call, that not enough “footwork” is done on the part of the buyer’s agent before the unwarranted “you are so unprofessional” tirade of voicemails begin.

I realize that some listing agents do not have any systems in place to handle calls, update MLS, or even file management for that matter. But all I am asking is that, for those of us who do, instead of leaving an expletive on the voicemail, try checking MLS first.

(stepping down from the podium)

Foreclosure: What It Really Means & How To Avoid It

Foreclosure: What It Really Means & How To Avoid It.

I'm Here To Help.

Don’t give up. There are options available to help millions of homeowners rescue
themselves from the brink. Since it is crucial to act before a foreclosure takes
place, now is the most important time for you to review the following options
and solutions.

REALTORS® with the Certified Distressed Property Expert®
(CDPE) Designation have trained extensively to understand the options,
solutions, and effective methods for dealing with homeowners facing
hardships.

As a REALTOR® and CDPE® with Century 21 Landmark Network,
Keisha can thoroughly explain your alternatives to you and help you assess the
best solution you should pursue for your own financial situation.

Don’t risk your financial future and the potential sale of your home with an agent who
is not experienced and trained in helping you attain a solution to preventing
foreclosure. Call Keisha Mathews, REALTOR® and CDPE®, she’s here to help.

I’m Here To Help.

Don’t give up. There are options available to help millions of homeowners rescue
themselves from the brink. Since it is crucial to act before a foreclosure takes
place, now is the most important time for you to review the following options
and solutions.

REALTORS® with the Certified Distressed Property Expert®
(CDPE) Designation have trained extensively to understand the options,
solutions, and effective methods for dealing with homeowners facing
hardships.

As a REALTOR® and CDPE® with Century 21 Landmark Network,
Keisha can thoroughly explain your alternatives to you and help you assess the
best solution you should pursue for your own financial situation.

Don’t risk your financial future and the potential sale of your home with an agent who
is not experienced and trained in helping you attain a solution to preventing
foreclosure. Call Keisha Mathews, REALTOR® and CDPE®, she’s here to help.

Foreclosure: What It Really Means & How To Avoid It

9 Ways to Avoid Foreclosure:

1. REINSTATEMENT: Bring the loan current
2. FOREBEARANCE: Temporary repayment plan
3. REFINANCE: New loan with reduction in monthly payments
4. LOAN MODIFICATION: Modify original loan terms
5. SELL THE PROPERTY: Use equity to payoff or pay difference
6. RENT THE PROPERTY: Must make loan current
7. SHORT SALE: Negotiate with bank to accept sale under loan amount
8. DEED IN LIEU OF FORECLOSURE: “friendly foreclosure”
9. BANKRUPTCY: Will stall foreclosure but not prevent it

The facts are these, if you are currently experiencing a financial hardship and are considering walking away (foreclosing) or bankruptcy, there is a better, more dignified way to exit gracefully – short selling your home.

The benefts to short selling your home are recovering sooner from any “late payment” marks against your credit (with foreclosure, the judgement remains on your credit report for up to 7 years and there is NO guarantee that you can get a loan to purchase again within two to three years contrary to popular belief), and in some instances, some lenders are allowing short sales without being in default. I personally have closed a handful of those. In that instance, the seller could feasibly purchase again right away.

Additional benefits to a short sale are the Debt Forgiveness Act which protects you from tax implications up to $250,000 (if you’re single) and $500,000 (if you’re married); and SB 458 (California only) which protects you from the deficiency once the short sale closes, neither the Sr nor the Jr lienholder can pursue for the difference once the sale is complete.

Unlike SB 458, once you “walk away”, the deficiency will walk right behind you. Then it will take another derogatory action to make that go away — bankruptcy. Not only is bankruptcy yet another blow and judgment against your credit, but it’s also expensive. Whereas with a short sale, your lender will cover the costs of the transaction (commission, escrow/title fees, buyer closing costs, etc). If you have a definitive hardship, it is assumed you have no funds to contribute to the transaction.

As you can see, an expert in this area is required as this is not an easy process; nor is every real estate professional trained in short sales.

So, reconsider “walking away”, count the costs, do your homework, get with a qualified real estate professional, and soon you will be on track to recovering sooner.