I suppose it’s a start. But we could do more. Like accepting VA loans above and beyond all other lending types and financing methods. That, however, is a story for another time.
Before, most of the banks, via “larger rule books”, required that a delinquency(a showing that the payments cannot be made…. by not making mortgage payments) be present before the property could be sold short. The typical time frame for their definition of “deliquency” was 90 days. It was at that time a Notice of Default was filed against the Home Owner that was in distress. That was when the bank would open their ears to allow for us to start the Short Sale negotiation.
Today, there has been a change in that rule for military and veterans “to be deployed”. To make the story a bit shorter and more digestiable – There does not have a “showing of deficenty” when wanting to start, negotiate and close a short sale. Applicable to the Militay officials – this will do a GREAT job giving their credit some relief.
Although the short sale process does take a toll on a distressed home owners credit, we have seen as some of our Short Sale clients did not have to be late for any payments. These clients maintained current on their mortgage payments while we negotiated and closed their short sale.
Their fico’s scores maintained pretty close to their starting point. We had seen dips in credit as much as 50 points. That dip is a small decrease compared with the 200 point decline after mortgage lates had been tallied by the credit bureaus. Couple the mortgage lates with a charge off for the short sale and you have a much larger dip in credit score.
Please let us know if we can help you. The 10-99 forgiveness has not been re-approved and will expire this 12/31/2012, if it is not extended. Let us know when you are ready to talk about your Short Sale Options.