Tenika

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Hi Tenika,

You could try a Goodwill Letter, but more than likely you’ll need some more time to pass with on-time payments before they would consider removing the 30-day.  If it’s any consolation, the good news is that the damage to your credit will be less as each month passes. 

Thanks for the questions and hope this helps.

Paul

Can you tell me how short selling 3 rental homes will affect our credit? Our scores are 750 currently.  Haven’t found any information on the impact of 3 homes compared to doing just one. Is it true that actual missed payments on the loans is what hurts your credit more then the short sale itself? I currently have offers on all 3 and am about to be 60 days past due on the loans. We have two rentals in AZ (a non-forgiving state) and one in CA.

Just wondering if we should try and make arrangements with the collection dept to lessen the impact on our credit report or does this not even matter? Once it goes to collections, it is done? Do you know that if we do pay on the loans, will this affect the lenders decision to accept the short sale?

Any advice you can give would be great. Thanks so much for your time and expertise.

Gina

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Hi Gina,

As far as credit scoring goes, a 60 day late is worse than a 30, and a 90 is worse than a 60, and so on; however, the impact that payment arrangements would have on a short sale rejection or approval is entirely up to the investor who owns the loan (i.e. Wells Fargo, Deutsche Bank, etc.). 

One way to find out whether or not the lender would agree to a short sale while receiving timely payments would be to read the investor guidelines for workouts.  This can be accomplished by writing to the servicing lender requesting the identity of each loan’s investor and specifically the identity of the securitization trusts.  Armed with the specific name of a trust, the pooling and servicing agreement can be located on Sec.gov and scanning the document for prerequisites for loan workouts might provide the answer.

A simpler way might be to ask the short sale account manager assigned to your file at each lender whether or not payment arrangements will prevent the successful closing of your short sale.  The answer you get may or may not be truthful and most likely not reliable based on rampant bank incompetence. 

A third option would be to try it and assuming there is a legitimate hardship where default is imminent coupled with persistent follow up by your real estate agent and/or yourself, the files could probably be pushed through.

Thanks for the questions and hope this helps.

Paul

The good news is that my credit situation has drastically improved, and I have paid all of the account to zero balance except for one.  This same creditor (it was a credit union) has three accounts listed on my report.  I had two accounts with them – an auto loan and a credit line.  I’m not sure why the three accounts, but the one that shows a balance doesn’t even have an account number.  The balance is around $3500.  I should also note the date of last activity was July, 2006.

My question is what is the best advice on how to handle this account that would best affect my score quickly?  They haven’t tried to collect on this in over 4 years.  It doesn’t seem likely that they would start now.  But the balance of the account makes my revolving credit ratio appear to be 100% because all of my other accounts are zero balance and closed.  I have read about pay for delete letters.  Is that possible in this case?  If so, how much should I offer them for settlement?  Are there any better solutions?

As it stands, my credit score is 609.  I’m looking to purchase a house as soon as possible.  I need at least a 620 to get there.  Any thoughts on how long it would take to raise my score to 620?

John

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John,

When is the most recent date of last activity, or DLA of the ten derogatory accounts that you have?

The negative item you still have showing you state has a DLA of July 2006 but you should know that by so paying it today would drop your score considerably as your DLA will now be April 2010.

You may want to see if you are even still required by law to pay the original debt which may assist you with attaining a “pay for delete” scenario (but I doubt it).  A link to the statute of limitations on a state by state basis can be found here.  

http://activerain.com/blogsview/377048/chart-for-statute-of-limitations-debts 

In regards to the derogatories that still remain and have at least six months since the DLA I would recommend disputing the negative items on your own (after careful research on the pertaining laws) or hiring a credit repair company to handle the credit repair dispute on your behalf.  In the honor of shameless self-promotion I would be glad to offer you enrollment into our services her at HTDI Financial Consumer Division.

I hope this helps and please contact me if you have any questions.

Very respectfully,

Brian C. Aber

Vice President of Marketing
HTDI Financial
877-877-4834 x704

Charter Board Member
National Association of Credit Services Organizations
866-976-2276

I am in a trial modification with CHASE, ending April 2010. Payment in trial mod ok, but not sure about after that.  I am filing Chapter 13 bankruptcy the same month to strip my second mortgage and protect against an investment property that was foreclosed on. 

I would like to know if we can still pursue a short sale after we file, which is of interest to us after reading about the changes supposed to go in effect April 15th.  We are upside down $75000.00 in our house. 

We are trying to minimize the hit to our credit for when we want to buy another home down the road.  Is there any difference in trying to sell, or should we give the house back in the bankruptcy?

Thank you for all the useful information we have found on your site!

Jason

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Hello Jason,

The tradeline is required to be frozen at the time the bankruptcy case number is assigned.  This means that it should not report any further late payments after that date.  However, there is also a public records section for a credit report which is separate from the tradeline and this is where a completed foreclosure is noted.  For this reason, settling a debt through a short sale is generally preferred to a foreclosure even after the debtor has declared bankruptcy.

The program you’ve described that goes into effect this month is the Home Affordable Foreclosure Alternatives (HAFA).  I should write a separate article about it, but suffice it to say that it will probably work about as well as HAMP, HARP, and all of the Obama initiatives to date. 

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.

he sublease [without having him sign any papers] his apartment to a friend who moved out oweing rent. I had nothing to do with that. wh and how can they go after me?

Curry

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Curry,

If you are a co-signer or this is considered a joint account then they would have the ability to come to you for financial restitution.  If not, then they have no right to submit a derogatory account from someone else onto your record.  If you never agreed to be a party to that I would recommend either handling the disputing yourself (Broken Credit has excellent articles for research) or I would recommend hiring a NACSO certified credit repair company to handle your credit repair process.  

In regards to your husband not having any score whatsoever, I would recommend attaining a secure credit card for him.   Please make sure to keep your payments on time and to make sure the balance does not exceed 25-30% as revolving balance is 30% of your score.

If you would like to utilize our services I would be glad to extend you a discounted rate to assist you in getting started.

I hope this helps, 

Brian C. Aber
HTDI Financial
National Association of Credit Services Organizations
877-877-4834 x704

We put it up for sale right away, hoping that we could break even, and nothing. We kept up on the motgage for awhile, to the detrimate of our other obligations, but we could only keep it up for so long. We tried renegotiating our loan, but again…dead end.

We foreclosed on our home in Feb 08 (according to lender 2/12/08 was when forecloser was completed, and county record show transfer of title on loan happening at auction, 2/13/08).  We had a first and second mortgage.  We were defeated and tired. 

We moved and have started to rebound from the process.  We did a little reseach a few months prior to the foreclosure and found out that the home sold for more than we owed on the 1st and that the 2nd had “charged off” on our credit.  We called to find out how to help our credit due to the charge off and were told that we could settle for more money than we had available to us, or basically do nothing.  They (the mortgage lender) said that they would never persue the debt, but that it would stay on our credit. 

We just found out that we qualify for a VA Loan and that there wait after foreclosure is shorter than a conventional or FHA (2 years vs 3 years).  Excited and ready to move on, we started to check proir to the “timeline’, just to make sure we would be able to purchase another home.  So…found out that the “2 year” wait starts the day the foreclosure hits your credit, same with the the 2nd mortgage charge off. It is only 3 month shy of the “2 year” mark for us. But during my checking process I found out that up to 8 months after the foreclosure was reported my mortgage company continued to report me as late??? Can they do that?

They said that the sale wasn’t finalized until 10/08. But again, according to county records the title transfered from us to the buyer on 2/13/08.  Also, the second is continuing every month to report a charge off on my credit up to now!!  How can they do this? 

I understand that it is considered a debt that is still outstanding and that they have deemed it uncollectable, but how can they continue to “re-new” that debt? Is this legal? If I am trying to rebuild me and my families life after foreclosure, how am I to do that if the lender can continue to report me like it just happened?

I did contact the leaner,who by the way is the same for both mortgages and where originated at the same time, said that the 1st credit reporting months later was because of the sale not being complete until 8 months later.  And the 2nd, because we still “owe” the debt they can continue to report it.

I am so tired, please let me know what to do?  Fight…give up??

Defeated,
Gary and Jeni

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Hello Gary & Jeni,

It sounds like the property taxes were estimated based on land value only and then at closing they escrowed taxes based on the improved value.  Also, if the property was in Alabama, Iowa, Kansas, Michigan, or Minnesota, then there was a six month or longer redemption period post-foreclosure.  The second is not able to renew the debt for reporting obsolescence but they can continue to report the debt (each month) to the credit bureau until that date. 

You should give Brian Aber a call at HTDI to see what he can do for you.  Brian’s number is 877-877-4834 x704.  Tell him the Broken Credit Blog sent you.

Thanks for the questions and hope this helps.

Paul

Thankyou you have been a great help. I have sent letters to the bureaus about inaccurate information. They keep verifying what wording can I use to make they delete my inaccuracies? Please advise thankyou!!

Diane

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Diane,

I’m assuming from what you’ve wrote that you have received correspondence from the credit bureaus verifying the negative items you disputed. 

As for your request for the wording to sue to make them delete the derogatories … I wish I knew.  It all comes down to whether or not the negative items are meeting the criteria outlined in the Fair Credit Reporting Act for them to be continuously reported.  If your negative item is inaccurate and/or unverifiable then you will want to research the particular laws and reference them in your dispute.

I hope this helps,

Brian C. Aber
877-877-4834 x704

Whether the mortgage company can still report to the credit agencies the lack of payments during the short sale process?

I just received their short sale packet, but I am unable to pay. Can I dispute it if they put something on my credit report? I will be doing the QWR letter, but what about after they respond to it?

Thank you Paul!
God bless you!
Michelle 

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Hi Michelle,

The mortgage company can report the missed payments to the bureau during the short sale process.  The Qualified Written Request can temporarily remove the negative reporting for a period of sixty days.

Read: Mortgage Payment Posted Wrong

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.

TERESA

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Hi Teresa,

It’s possible.  Here is an example and another, but for a better answer read currently thinking short sale.

Thanks for the questions and hope this helps.

Paul

I have a question about the impact bankrupcy has on credit scores. I had filed chapter 7 in 2007 with a discharge in 2008. I went today for an auto loan and was told that my credit looked good, no debt, and timely loan payments. He said that he would guess by looking at my credit report I would have high 600 score but instead I have a 558.

I know that it hasnt been that long since I filed but I have paid off 2 loans since then and have one now, with timely payments being made, which is secured. I have known numerous people who have filed bankrupcy and within months they were getting car loans and even buying a house.

When do your scores go up? Why does it seem that mine is so low while others must be higher, given the same circumstances. I just dont understand. Will anyone help me rebuild my credit or will I just have to wait it out?

Thanks.
Marisa

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Hi Marisa,

It’s tough to say without looking at the credit report.  Do the tradelines that were in your petition show balances or late payments after the bankruptcy filing?  They should all be included in bankruptcy with no balances reporting and no late payments beyond the issuance of the bk case number.

Are there any other collections on your report?  How many inquiries do you have?  Are your credit limits reporting?  Questions, questions, and more questions…

Anyone looking for professional help with credit repair can contact Brian Aber with HTDI at 877-877-4834 x704.  Tell him Paul at the Broken Credit Blog sent you.

Thanks for the questions and hope this helps.

Paul