Report: Short Sales and Your Credit Score

Curious what will happen to your credit score after a short sale?
The answer is... it depends. How many mortgage payments did you miss? How much debt do you have? What is your outstanding balance to available credit ratio? What is your overall payment history? Your "point" impact will be calculated by FICO based on these and several other criteria. Here is an actual example of how a short sale affected my Destin short sale seller's credit score.
Property: Destin short sale condo - investment property (not owner occupied)
Lender: Aurora Loan Services
Number of Missed Mortgage Payments: 23
Short Sale Reporting: "Settled for Less Than Full Amount"
Previous Credit Score: 745
"During Short Sale" Credit Score: 646
Credit Score 30 Days After Short Sale: 732 687 and 679 (from the three credit bureaus, Equifax, Transunion and Experian)
My Destin short sale seller was amazed that his credit score seemed to shoot right up after his short sale was complete. This is not always the case. The bottom line is - you won't know how your score will change until you complete your short sale. But don't be dismayed, you CAN start to rebuild your credit immediately. And don't be suprised if your financial future is brighter than you think.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Destin FL Real Estate
Destin Short Sales & Pre Foreclosure Help.
http://www.shortsalesuperstars.com/ for agents
Read Wendy's Destin Real Estate Blog
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com
Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.
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Paradise Retreat Short Sale Approved

Compared to my last 5 month drama with Aurora Loan Services, this was a dream Short Sale approval!

Subject: 2047 SF Home in Paradise Retreat, Destin Florida

Mortgage: Aurora Loan Services - $400,000

Fair Market Value: $217,000

Amount Forgiven: $183,000

Timeline: 26 Days from Fax to Approval

Key to Success: Strong contract, reasonable closing costs, committed buyers, complete and thorough package

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

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Destin and Fort Walton Beach Short Sales & Pre Foreclosure Help.

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Aurora Loan Services: Short Sale Warning

I have had a Short Sale offer in process with Aurora Loan Services since December.

Facts:

The house, in Niceville, Florida, was listed for $183,000.

Offer was for $175,900. VA financing with seller total contribution of $3000 including doc stamps on the deed, a customary seller expense in Florida. Thus, the seller contribution to buyer's closing was only about $1700.

BPO (Broker Price Opinion) determined by seller's lender - $185,000.

Aurora counteroffers $185,000. Buyers stay firm at $175,900.

30 days later- today- Aurora says sale is "approved".

Receive approval letter. Aurora will pay $363 of the total closing costs, excluding a reduced broker fee.

I call Aurora. "VA will not ALLOW VA buyers to pay certain closing costs. You had the contract and the net sheet. The contract stipulated VA financing".

Aurora: "We don't pay closing costs."

Me: "Then the deal is going to fall through".

Aurora: "Sorry."

Warning: Although this lender only countered the purchase price, they omitted any mention of closing costs until the deal was "approved". Wish me luck saving this one!

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS GRI, ABR Rulnick Realty, Inc.
Specializing in SHORT SALE and FORECLOSURE work-outs on the Emerald Coast of Florida: Destin, Fort Walton Beach, Santa Rosa Beach, Seagrove, 30-A, Niceville, Bluewater Bay, Navarre, Crestview. 1-877-487-9639.
www.ShortSaleForeclosureHelp.com
www.RulnickRealty.com