Foreclosure in South Florida>Question Details

Nryntema01, Home Buyer in New York, NY

Pre-foreclosure and Short Sale. Fannie Mae loans

Asked by Nryntema01, New York, NY Wed Jun 12, 2013

My originating bank and the 3 credit bureaus label me as an approved short sale. Fannie Mae deemed me as a foreclosure and now I can't get a loan. The excuse I am getting from my credit union is that since I was in pre-foreclosure I am considered the ae as a foreclosure. I have been flawless on all of my other payments and raised my credit score 100 points since the short sale.

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Thank you for your quick responses. All of the banks and mortgage brokers I spoke to said minimum of 3 years. The credit union is at two years. The info I received is from the DU underwriting from Fannie Mae, that since at one point I was in pre foreclosure I am being labeled foreclosure. I read on another blog on trulia that there is a big issue with fannies computer system because pre foreclosure is the same code as foreclosure. This is the only thing standing in our path to getting a loan
0 votes Thank Flag Link Wed Jun 12, 2013
a short sale is NOT a foreclosure. The key is in your short sale negotiations, you should have negotiated how they will report it when it closes. A short sale can affect you you normally for 3 years, most mortgages call for a 3 years wait after the short sale but there are exceptions depending if you were late and again how they reported it. A credit union will be the hardest place to get a mortgage, meet with a local and trusted loan officer fror a local mortgage company to prequalify you and guide you .
0 votes Thank Flag Link Wed Jun 12, 2013
Your credit union is wrong. I am not sure how we go about proving that to them, but I would go to the top if I had to to correct this injustice. If a short sale were the same as a foreclosure NOBODY would short sell their homes, it's just too much trouble doing all the paper work and so on, everybody would just walk away and let the banks foreclose, which would be a disaster for the credit worthiness of former homeowners as well as for the banking industry and would cause extreme neighborhood blight.

How long has it been since the short sale, that may be the problem. What kind of loan are you trying to get? If it's a mortgage, go straight to a mortgage professional, get their opinion, then approach your credit union again. If some other kind of loan, again, perhaps you need to go to somewhere other than your credit union. That's a shame, but it would be worth it to re-establish credit.
0 votes Thank Flag Link Wed Jun 12, 2013
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