If you are a skilled negotiator then you can negotiate HOW the “SHORT SALE” is reported with the three bureaus by the lender.
Most Realtors don’t know this as they specialize more in listing the house on the MLS and letting people know when potential buyers are going to show up, not negotiating or understanding all the variables that one can use as leverage with a bank.
If one is not late, then obviously, their scores are not going to take that big of a drop. The question is HOW IS IT REPORTED and how will THAT REPORTING affect future purchases of THINGS. This is often overlooked.
Every case is different and every bank is different in regards to short sales, mods, etc.
This is what is happening now so those of you who are late on your seconds may want to pay attention. Banks (Wells Fargo) that have pools of equity lines are taking portions of them based upon delinquency and writing them off, similar to a CC charge off, before they foreclose or SS and selling the debts to collectors.
This means that you will have collectors hounding you for the rest of your life and possibly bring a judgment against you and goes as far as wage garnishment for the collection.
If anyone is doing a mod or short sale make sure you have someone do it that KNOWS ALL THE ELEMENTS and READ what you sign in detail.
I know a lady that is contracted to do all the processing and negotiating for alot of attorneys clients on these and has been doing it for years. She currently has over 200 files….
If anyone has questions about this arena and the latest, she will dispel all the myths and give you the realities in a heart beat or I can ask her and post on it….
Nothing should be done rashly right now when it comes to short sale negotiations and mods. You have to know what you are doing.
