Short Sale vs. 12 months deliquent?

[California gal]

Hi,

 

I'm 12 months deliqent on my mortgage payment for my condo, as part of my short sale process. If I pull out of the short sale and try to do a traditional sale (prices are on the rise here), will there be less damage to my credit, or is all the damage already done?

 

Thanks!

[denny123]

From what I can tell less damage. Take a look at the recent "Method of Payment" thread I just created and then realize that Fannie *minimum* rules(not including overlays) for getting a mortgage after a short sale is:

1) 2 years for 20% down

2) 4 years for 10% down

3) 7 years for 3.5% down

 

FHA

1) 3 years

 

As far as I know there is no Fannie or FHA minimum standards for 120 day lates. You might have a b!tch of a time finding a lender in the next couple of years who will issue with 120 day lates or you might have a tough time rebuilding your credit score within 2 years with those 120 day lates, but conceivably you should be able to get a new mortgage sooner. Plus it's really just a choice of 120 day lates vs. 120 day lates + short sale. The short sale itself doesn't change the presence of the 120 day lates. Lastly, maybe you can convince your existing lender to take off the 120 day lates if you take it off the short sale process and sell it yourself and pay out of pocket any difference which makes them more money.

 

 

Also add to the fact that many short sales get miscoded like a foreclosure by coding it a reposession or charge off instead of a "settle for less than amount owed". That damage might have already been done since you might be pre-forclosure process and they might have already coded it as such. If that is true then you'll probably want to pay attention to the responses I get out of that thread since you'd be in the right to dispute that.

 

That's all I know on that front!

[dvd]

Hi,

 

I'm 12 months deliqent on my mortgage payment for my condo, as part of my short sale process. If I pull out of the short sale and try to do a traditional sale (prices are on the rise here), will there be less damage to my credit, or is all the damage already done?

 

Thanks!

 

Im a little confused with the question.

 

If you think you can sell your condo for a price that would cover your mortgage then do it. What does your RE Agent think about the possibility of selling your Condo for a price that would cover your mortgage.

[NeverQuietHere]

Have you asked over in the mortgage forum? You might want to have this thread moved there.

 

Good luck!

[Em n EM]

the bank will need to approve the short sale...hope your agent is a short sale expert....make sure to get in writing that they will report your tl as paid, before signing off on the agreement. They don't want to own your house, foreclosures cost them a lot of money. Reduce the price for a quicker sale short sell or traditional its not going to sell unless the price is right.