Foreclosure in Surprise>Question Details

gvaldezrn, Home Owner in Surprise, AZ

I have initiated the PreForeclosure Short sale of my home with B of A. Their agent said since I initiated this with my mortgage in good standing and

Asked by gvaldezrn, Surprise, AZ Mon Sep 24, 2012

never been late, if I was to move and not be able to pay the mortgage that future missed payments would not go to collections and my credit would not be effected? Is this true??? This program is called cooperative short sale.

Help the community by answering this question:


The impact that a short sale will have in your credit will depend on how the Lender or the financial institution that holds your mortgage now, is going to reported in your credit.
Normally short sales is reported as "settled" or "paid in full".
settled: means that you have an agreement to pay back only a portion of that total amount.
paid in full: means that you satisfied your debt.

Keep your mortgage payments in good standing, and
Make sure to keep record of that final letter that you agreed with your lender where they stipulated how they are going to reported your short sale to the different credit bureaus.

Best of Luck,

Maria E. Cipollone
0 votes Thank Flag Link Tue Sep 25, 2012
When it comes to your credit and large financial transactions, it is best to get it in writing. The Banks do roll out new programs all the time. Request a copy of the details of the program in writing, and ask the agent to highlight or specify the section they are referencing. Then have it reviewed by experts you trust. If they are unwilling to provide it in writing, it is not true.
0 votes Thank Flag Link Tue Sep 25, 2012
Not true! Continue to make your payments if there is any way at all that you can. The short sale will have a small effect on your credit rating, however, missed payments will have an immediate and drastic effect on your credit rating, and it won't be a good effect. Your account may not go to collections, you won't receive phone calls and so on but your credit will definitely be effected.
0 votes Thank Flag Link Tue Sep 25, 2012
That is not true. Anytime you are late the bank will report to credit bureau. A cooperative short sale is basically the B Of A will approve a price and timeline to allow short sale without offer. They will also give you a seller incentive between 2500 to 30000 depending on your loan. After short sale completed they will still report loan paid for less than owed.

"While a short sale will still have a negative effect on your credit, it generally takes less time than a foreclosure, so your reported delinquency could be shorter. As a result, your credit may improve faster. If a short sale is completed on your property, we will report that your loan was “paid in full for less than the full balance."

If you stay current you can buy immediately with an FHA loan as long as you are not considered taking advantage of declining market. You must wait 3 years after a short sale for a conventional loan. Hope this helps.

Mario Burnias
Realty Executives Silicon Valley
0 votes Thank Flag Link Mon Sep 24, 2012
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