(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!