Short Sale in Birmingham
History: Started a short sale with Chase in August. Was told client would qualify for a short sale, however final approval would come with the offer. Offer submitted on September 2nd. Time rocks on and at the end of October we were notified the docs were never received and needed to be resent. November client receives a foreclosure notification. Contact Chase and they tell us the short sale has been approved and they will notify the attorney to cancel the foreclosure. December rolls around and we receive our approval to close. Client questions how the short sale will be reported to credit agencies. Negotiator does not know. Today client pulls his credit report to find Chase has reported that he is in foreclosre. Seller credit dropped 200+ points, and now says "why not foreclose, Chase has already reported as so" Is there any way to get Chase to correct their previous reporting?
Replies to This Discussion
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Permalink Reply by Steve Early on
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Hi Deb:
Typically if the short sale is completed, Chase will report it as "Satisfied for less than amount owed." The seller's credit score is going to drop whether he does a short sale or is foreclosed on, but the impact of a short sale should be somewhat less.
You can appeal to Chase to have the reported category changed, but this is best done (so I'm told) after the short sale closes. They will not change it to "Paid in full", but they should change it to satisfied as indicated above. In any event, it should not be reported as foreclosure if that is not the outcome.
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