What to do If Credit Report Shows Foreclosure Instead of Silicon Valley Short Sale

What to Do If Credit Report Shows Foreclosure Instead of a Silicon Valley Short Sale(edit/delete)

Credit reports frequently have mistakes. Very often consumers are not aware of these mistakes until they are trying to obtain credit for a large purchase like a home or car.  There is a process for rectifying credit mistakes, but it can take some time.

As more and more short sales are being processed it is only natural that some mistakes are showing up on credit reports, especially since there is no standard way for a credit report to reflect a short sale. The bank may report loan paid as agreed, or loan paid for less than the full amount. Which ever way it is reported it should not say foreclosure. Unfortunately occasionally this will happen, but the fix is easy.  When you sell a home as a short sale you will receive a HUD1 statement. this is a statement that spells out what money came in from the sale and how it was distributed. If a home is foreclosed there is no HUD1 given to the owner.  So, if you have a HUD1 your home was not foreclosed.  You should send the HUD1 to the credit reporting agency along with the statement that since you have a HUD1 you were not foreclosed on. They can then remove the foreclosure from your credit report. 

It is probably a good idea to check your credit report 6 and 12 months after a short sale just to make sure this has not happened.

If you have nay questions about short sales please feel free to contact me.

Marcy Moyer CDPE

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Federal Government Disclaimer (MARS): 1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Silicon Valley/Bay Area Short Sale Up Front Pricing: How It Can Help Both Buyer and Seller

HAFA does it, and now Bank of America is trying it. What is it?  In a short sale the seller owes more to the bank than their home is worth. In order to sell the home the bank or banks have to agree to accept less than property is worth to satisfy the loan.  The problem is that no one knows what the bank will accept until they get an offer and that offer is analyzed by the lenders.  Since this often takes many months it can often lead to foreclosure at worst, and incredible frustration at best.

  

HAFA short sales which were started by the Obama administration can give you the amount the bank will accept ahead of time so that the seller, agent, and buyer know how to structure the offer in order to get it approved.  The seller still needs to qualify, and having a vacant home eliminates the qualification.  Bank of America is now beginning to try this method as well, and it should cut down the amount of time it takes to do a short sale, which in most cases is anything but short.

As a Silicon Valley/Bay Area short sale specialist I can help you buy or sell a short sale property. Feel free to contact me for help.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

My Contribution to Shoring Up The Values of Foreclosed/ Short Sale Homes In The Bay Area Distressed Property House Sitters

( This post is only partially in jest and partially serious )

While places in the Bay area  like Palo Alto and Menlo Park only have a few foreclosures, other cities like San Jose or Daly City can have up to 10% of the homes for sale foreclosed, and 30% can be short sales at any given time.  The foreclosed homes are generally vacant, and some of the short sales are also.  The problem with this is that the longer a home is vacant and not maintained because either the owner is a bank or has no money, as in a short sale owner, the less valuable the home becomes. Now with the problem of foreclosure moratoriums in some states the vacant home problem will get worse.

My solution?  Distressed Property House Sitters

I think that the banks who own the properties, or who hold the notes should hire house sitters for these vacant properties.  They could be like home stagers, but live there instead of just leaving their furniture.  This could provide employment and homes for many people who now have neither, and help protect the bank’s assets.

Of course there would need to be rules, like the home can be shown at any time, and any changing of clothes needs to be done in a room with a closed door. Also, as much as I love dogs, it would probably be better to have a no pet policy, but I think this could be a win- win situation for both parties. 

This could also help the busy listing agent by taking some of the burden of maintaining a vacant property off their shoulders.

Anyone agree with me?

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285