The affect on your credit from foreclosures, short sales and deed-in-lieus

Jumbo in Oregon

LoanSafe Member
Jan 28, 2012
25
0
0
Tom; would you know if it makes any difference to your credit score if you have more than one FC or DIL? Many of us had to walk away from more than one investments. If it doesn't have any difference, does it have any impact on how long you have to wait before you can get another mtg? ie- because you have one-FC and 2-DIL, you have to wait three times as long.
Thanks for your help.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
84
48
SF Bay Area CA
Tom; would you know if it makes any difference to your credit score if you have more than one FC or DIL? Many of us had to walk away from more than one investments. If it doesn't have any difference, does it have any impact on how long you have to wait before you can get another mtg? ie- because you have one-FC and 2-DIL, you have to wait three times as long.
Thanks for your help.
Hi Jumbo

I might recommend you conduct some research on the net and visit some dedicated credit forums. You might also download and read the FCRA, which governs credit reporting.

Were it me, I'd pull current credit reports from the 3 majors. With those reports in hand, I'd visit a local experienced and well-reputed loan broker for input. That's their job and they'll have an idea about your chances for qualifying for a purchase loan.
 

Jumbo in Oregon

LoanSafe Member
Jan 28, 2012
25
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0
Thank you for your suggestions. If I find anything out that may be useful to some of us in this situation, I will log it back here for others to use as reference.
 

shayl475

LoanSafe Member
Sep 10, 2010
185
1
0
Update, our house was foreclosed in mid 2010. We kept all of our other accounts current. Just pulled my scores and they are 750, 770 and 770.

Also, we received a 1099A on our foreclosure, the auction bid was listed as the FMV of the home and we had no tax consequences.

This could not have worked out better for us. Just got back from Florida, vacation would have been out of the question before.
 

NVfun

LoanSafe Member
Sep 3, 2011
41
1
6
I am not sure if my credit is done being hit yet from my pending foreclosure (overdue last Sept 15...NOD January...credit report notes 120 days overdue). However, at this point my credit score is still a bit over 650 (was likely mid-high 700s before). Does anyone know when the credit hits related to foreclosure stop? Thanks!
 

OverandDone

LoanSafe Member
Sep 2, 2011
785
5
18
Mine dropped at 3 months late, then went down more when the foreclosure actually showed as repossession and was finished, bounced back up to almost 700 when the debt of the foreclosure dropped off my credit report and then dropped back to mid 600s when the second charged off in March. Now went back up to close to 700 again.
 

StuckInMiddle

LoanSafe Member
Aug 12, 2013
5
0
0
Mine dropped at 3 months late, then went down more when the foreclosure actually showed as repossession and was finished, bounced back up to almost 700 when the debt of the foreclosure dropped off my credit report and then dropped back to mid 600s when the second charged off in March. Now went back up to close to 700 again.
Mine never really dropped as much as they say.

I did a short sale in 2010 on a condo that was worth $75K after Buying at $155K and after busting my behind trying to sell for 3 years. My original lender, National City said they would work with me even when I wasn't delinquent and I got a buyer for them. My paperwork was pristine, credit was in the 780's and then nothing. 4 months later, loss mitigation said I had to go at least one payment in arrears, so my attorney suggested I do so as to keep from losing my buyer (who was quite squirly) and we heard nothing. I was flipping out - never had a late payment before etc... But heard nothing from National City. Six weeks later, got a letter from PNC that they bought the mortgage and that I needed to pay up. We re-submitted everything and nothing. 4 months later I lost my buyer on a Tuesday and that Thursday I got a notice that Green Tree had bought the mortgage from PNC and approved the short sale. By that time, I had no buyer and my realtor basically walked away. At that point, I was 6 months delinquent on the mortgage.

I almost gave up - it was the holidays, cold (midwest freeze) and no one was out looking - much less at crappy condo conversions and one day I decided to pull into this Realty company on my way home and asked if they had anyone that would be interested in helping me or work with my situation. There happened to be on guy there late and he was really interested. Two days later I had a buyer and a contract. Three months later I was closed and the hell was over.

In total - 9 months delinquent. Credit started in 780's, lowest it got was 695 (Equifax). I was able to buy a car 8 months later and get a decent rate and 18 months after that traded it in on another and got 0% interest.

The oddest part is how this stuff shows on my credit report (good/bad). TU and EXP have it as settled for less than paid real estate loans - which is what we expected but Equifax has it as an installment loan chargeoff. That sometimes causes issues and because the loan moved around so much it looks like I defaulted on two mortgages/loans, but it's been explainable. Now I'm back into the 750's.
 

lunasgal

LoanSafe Member
Jan 21, 2011
8
0
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My foreclosure was complete in September 2013- Sale approved by the judge- My Foreclosure never hit my credit, or hasn't hit yet.. And strangely enough my house just disappeared from my credit totally about 7 months ago, not showing any delinquency for the house at all, never did show late.... Late payments, or lack of payments never showed up on my credit.. I did a Chapter 7 in 2010.. And included my house but later did a Hamp, but then foreclosed totally.. My credit is still at 691.. Wondering if this is because of my Chapter 7? Any ideas?
 

ilzho

LoanSafe Member
Mar 29, 2012
63
0
6
I have a question.
My house is 2 years of 120+ lates. Working on short sale, but will probably be foreclosed.
If it is foreclosed on, can I expect a drop in my credit score, since I already have 2 years of 120+ lates? My score is 680.
 

frustratedincali

LoanSafe Member
Jan 24, 2015
68
3
8
What is the credit impact of mortgage deliquency and of settling a second mortgage? I had excellent credit and it already dropped to good after my first 30 day late payment on my second mortgage. I am assuming it will take another hit after 60 days and that this will continue or will it level out at some point? I have no other credit issues just the mortgage problem. Also, if I do settle the second mortgage what impact will that have on my credit?