Susy’s Short Sale

We are in the process of trying to get a mortgage. Having done a short sale in FL and recieving a Satisfaction of Mortgage are records show fully paid and satisfied. Would it be marked differently on a credit report that would cause us not to Qualify. We have a 760 credit and no non/late payments?

Susy

——

Hi Susy,

If you didn’t have any late payments then you can qualify for a mortgage immediately.  You should expect a tradeline to be marked as ‘settled for lesser than amount’ on a short sale.  Any friendlier reporting would be welcomed but as I mentioned, it wouldn’t be needed per FNMA Announcement 08-16 FAQ which reads:

Q: If a borrower has completed a short sale and was never delinquent on that mortgage and is now attempting to purchase a new primary residence, will Fannie Mae purchase the loan?

If the borrower is purchasing a new property and the previous mortgage history complies with our excessive prior mortgage delinquency policy and does not have one or more 60-, 90-, 120-, or 150-day delinquencies reported within the 12 months prior to the credit report date, the loan is eligible for delivery to Fannie Mae, provided the lender or servicer who completed the short sale has not entered into any agreement that obligates the borrower to repay any amounts associated with the short sale, including a deficiency judgment.

Read: Successful Short Sale

Thanks for the questions and hope this helps.

Paul