A Short Sale Miracle

[Effective Demand]

[quote=sdrealtor]I have read all over the Internet that Short Sales benefit no one other than the lisitng agents and that they are just as damaging to one’s credit as a foreclosure. [/quote]

Ok, I’m pretty well versed in this stuff and this is the first time I ever heard the theory that short sales only benefit the listing agent.

[quote=sdrealtor] Relocation forced borrowers to move cross country for family reasons. The short sale was completed with the sellers never missing a single payment. This dispells the myth that you always need to miss payments to get the bank to accept the short sale. The truth is you need to demostrate a hardship case. The bank wrote off about $100,000 of debt which the sellers will not be taxed on federally or statewise.

[/quote]

There is a million variables here. The borrowers either had just one lien or it was a purchase money loan. Also, from the sounds of it, I would bet this is a portfolio loan and not securitized.

The reason why 1 lien OR purchase money matters is because then the loans are effectively non-recourse. If it 1 lien refi then the borrowers are covered by the single action rule. If it is purchase money then it is non-recourse automatically.

Portfolio versus Securitized matters because servicers for securitized loans have a much tighter range of options available to them defined by their PSA’s (which can each be different depending on the pool). A portfolio loan the bank owns and just looking at if the borrower is recourse or not brings the situation to a logical conclusion pretty quickly if it isn’t recourse. There really is no option and its in the banks best interested to get it sold as quickly as possible.

[sdrealtor]

Effective Demand,
If you look around more than a couple minutes online you will see alot of peple claiming the damage to ones credit is just as bad with a short sale.

All your comments about the recourse/non-recourse, securitized/non-securitized are accurate. However, when you do a short sale you can give up the non-recourse nature of the loans which does not specifically cover a short sale but rather a foreclosure. All the issues regarding portfolio/securitization only cover how quickly the short sale gets done.

The question I was never quite able to put a figure on is what happens to one’s credit when a large debt is written off and I fully expected 100 to 200 points of FICO damage, maybe more.

I have a client whose scores dropped almost 150 points because a department store bill for about $75 went to an old address for 3 months (dropping from 815 to 670 recently). This is probably gonna make some folks unhappy around here who have never gotten debt relief anywhere near this level. Quite frankly, I am shocked myself. Their scores today (they sent me a printout) are 748, 748, 770. Those are damn good scores and still prime A+ quality borrowers.

[sdrealtor]

Effective Demand,
If you look around more than a couple minutes online you will see alot of peple claiming the damage to ones credit is just as bad with a short sale.

All your comments about the recourse/non-recourse, securitized/non-securitized are accurate. However, when you do a short sale you can give up the non-recourse nature of the loans which does not specifically cover a short sale but rather a foreclosure. All the issues regarding portfolio/securitization only cover how quickly the short sale gets done.

The question I was never quite able to put a figure on is what happens to one’s credit when a large debt is written off and I fully expected 100 to 200 points of FICO damage, maybe more.

I have a client whose scores dropped almost 150 points because a department store bill for about $75 went to an old address for 3 months (dropping from 815 to 670 recently). This is probably gonna make some folks unhappy around here who have never gotten debt relief anywhere near this level. Quite frankly, I am shocked myself. Their scores today (they sent me a printout) are 748, 748, 770. Those are damn good scores and still prime A+ quality borrowers.

[sdrealtor]

Effective Demand,
If you look around more than a couple minutes online you will see alot of peple claiming the damage to ones credit is just as bad with a short sale.

All your comments about the recourse/non-recourse, securitized/non-securitized are accurate. However, when you do a short sale you can give up the non-recourse nature of the loans which does not specifically cover a short sale but rather a foreclosure. All the issues regarding portfolio/securitization only cover how quickly the short sale gets done.

The question I was never quite able to put a figure on is what happens to one’s credit when a large debt is written off and I fully expected 100 to 200 points of FICO damage, maybe more.

I have a client whose scores dropped almost 150 points because a department store bill for about $75 went to an old address for 3 months (dropping from 815 to 670 recently). This is probably gonna make some folks unhappy around here who have never gotten debt relief anywhere near this level. Quite frankly, I am shocked myself. Their scores today (they sent me a printout) are 748, 748, 770. Those are damn good scores and still prime A+ quality borrowers.

[sdrealtor]

Effective Demand,
If you look around more than a couple minutes online you will see alot of peple claiming the damage to ones credit is just as bad with a short sale.

All your comments about the recourse/non-recourse, securitized/non-securitized are accurate. However, when you do a short sale you can give up the non-recourse nature of the loans which does not specifically cover a short sale but rather a foreclosure. All the issues regarding portfolio/securitization only cover how quickly the short sale gets done.

The question I was never quite able to put a figure on is what happens to one’s credit when a large debt is written off and I fully expected 100 to 200 points of FICO damage, maybe more.

I have a client whose scores dropped almost 150 points because a department store bill for about $75 went to an old address for 3 months (dropping from 815 to 670 recently). This is probably gonna make some folks unhappy around here who have never gotten debt relief anywhere near this level. Quite frankly, I am shocked myself. Their scores today (they sent me a printout) are 748, 748, 770. Those are damn good scores and still prime A+ quality borrowers.

[sdrealtor]

Effective Demand,
If you look around more than a couple minutes online you will see alot of peple claiming the damage to ones credit is just as bad with a short sale.

All your comments about the recourse/non-recourse, securitized/non-securitized are accurate. However, when you do a short sale you can give up the non-recourse nature of the loans which does not specifically cover a short sale but rather a foreclosure. All the issues regarding portfolio/securitization only cover how quickly the short sale gets done.

The question I was never quite able to put a figure on is what happens to one’s credit when a large debt is written off and I fully expected 100 to 200 points of FICO damage, maybe more.

I have a client whose scores dropped almost 150 points because a department store bill for about $75 went to an old address for 3 months (dropping from 815 to 670 recently). This is probably gonna make some folks unhappy around here who have never gotten debt relief anywhere near this level. Quite frankly, I am shocked myself. Their scores today (they sent me a printout) are 748, 748, 770. Those are damn good scores and still prime A+ quality borrowers.

[sdrealtor]

SD R,
Actually Wells fargo is about middle of the pack in terms of motivation. They tend to be the most tedious and rigid in their processing but provide good releases.

I have gotten approvals in under a week from some lenders.

And then there is CW. If you kow what you are doing and doubt foul it up, its possible to do in 60 days. But they constantly change their policies and the releases they provide. It seems as though BofA has gotten tougher with te releases of late.

[sdrealtor]

SD R,
Actually Wells fargo is about middle of the pack in terms of motivation. They tend to be the most tedious and rigid in their processing but provide good releases.

I have gotten approvals in under a week from some lenders.

And then there is CW. If you kow what you are doing and doubt foul it up, its possible to do in 60 days. But they constantly change their policies and the releases they provide. It seems as though BofA has gotten tougher with te releases of late.

[sdrealtor]

SD R,
Actually Wells fargo is about middle of the pack in terms of motivation. They tend to be the most tedious and rigid in their processing but provide good releases.

I have gotten approvals in under a week from some lenders.

And then there is CW. If you kow what you are doing and doubt foul it up, its possible to do in 60 days. But they constantly change their policies and the releases they provide. It seems as though BofA has gotten tougher with te releases of late.

[sdrealtor]

SD R,
Actually Wells fargo is about middle of the pack in terms of motivation. They tend to be the most tedious and rigid in their processing but provide good releases.

I have gotten approvals in under a week from some lenders.

And then there is CW. If you kow what you are doing and doubt foul it up, its possible to do in 60 days. But they constantly change their policies and the releases they provide. It seems as though BofA has gotten tougher with te releases of late.

[sdrealtor]

SD R,
Actually Wells fargo is about middle of the pack in terms of motivation. They tend to be the most tedious and rigid in their processing but provide good releases.

I have gotten approvals in under a week from some lenders.

And then there is CW. If you kow what you are doing and doubt foul it up, its possible to do in 60 days. But they constantly change their policies and the releases they provide. It seems as though BofA has gotten tougher with te releases of late.

[urbanrealtor]

Wells Equity or Wells Mortgage?

They are both okay on my ss listings but Equity seems a lot faster.

Just sayin.

So what were their scores prior to the short?

[urbanrealtor]

Wells Equity or Wells Mortgage?

They are both okay on my ss listings but Equity seems a lot faster.

Just sayin.

So what were their scores prior to the short?

[urbanrealtor]

Wells Equity or Wells Mortgage?

They are both okay on my ss listings but Equity seems a lot faster.

Just sayin.

So what were their scores prior to the short?

[urbanrealtor]

Wells Equity or Wells Mortgage?

They are both okay on my ss listings but Equity seems a lot faster.

Just sayin.

So what were their scores prior to the short?

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