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Permalink Reply by Paula Evans on June 7, 2010 at 3:11am

Anna, yes the lates can destry your credit no matter what the type of account it is.

Anna Boyd said:

I've been told that credit agencies report up to 90 day late. So a person can miss a year and it shows as a 90 day late - which is still a decent hit. Also, from what I've seen of people's credit scores after a short sale or a BK is that a lot depends on length of prior good credit. If everything was peachy for 20 years until a hardship occurred and there were multiple accounts paid as agreed, it would explain the wide swings on how it affects someone's credit.

Katerina Gasset said:

We have plenty of sellers who after a short sale their credit scores actually went up. We have those who have such terrible scores because they did not make a mortgage payment for over 2 or 3 years. Going 120 days late drops your credit score to foreclosure levels so the homeowner is going to take a bad hit in being so late.

But we have plenty of homeowners who did not go late on their payments and got a short sale and it only shows on their credit report that they paid their loan off in full. That is a good mark.

Like Jeff says- it all depends!

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Permalink Reply by Paula Evans on June 7, 2010 at 3:20am

Rhonda, thats great for you. If you can get your bank to work with you without missing a payment then yes that is the way to go.

Rhonda Mial said:

My husband and I just did a ss w/Suntrust in 03/2010. Suntrust reported our account as settled and we didn't have any impact on our scores. In fact our scores actually went up and we both had 825 after they closed our account. We had never missed any payments and we were never late regardless of how hard of a struggle it was to get the mortgage paid. DON'T LISTEN TO ANYONE IF THEY TELL YOU NOT TO PAY YOUR MORTGAGE OR JUST PAY IT LATE!!! You wouldn't believe how many experts advised us to just not pay our mortgage. We begged, borrowed and sacrificed everything to get the payments made and now we have just been pre-approved for another mortgage and we are buying another house! it sounds almost impossible and not many people could advise us because our situation is rare as we hadn't missed or been late with any payments. It can be done but you have to be convincing with your hardship letter and you must be able to communicate to the bank the severity of your situation.

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Permalink Reply by Wendy Rulnick on June 8, 2010 at 1:29am

Unfortunately, Fannie Mae won't consider a short sale unless there are missed payments... A few investors follow suit.

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Permalink Reply by Paula Evans on June 8, 2010 at 1:58am

Wendy, yes it is unfortunate...

Wendy Rulnick said:

Unfortunately, Fannie Mae won't consider a short sale unless there are missed payments... A few investors follow suit.

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