Posted on: 27th Oct, 2010 02:47 pm
We purchased our first home in Miami-Dade county in 2005 (that pretty much sums it all up right?) :lol: . A job relocation happened in 2007, the market crashed, yet we continued to pay the mortgage until mid-2009 while permanently relocated in another state. A strategic decision was made to cut our losses and pursue a short-sale.
Fast forward to today. The short sale was finally executed in May 2010, unfortunately we fell victim to the belief that our accounts had to be in distress to get this done. We could have and should have stayed current, sadly. The 1st (BOA) and 2nd (Citi HELOC) went 90+ days. Citi assigned the 2nd to a collector, we negotioted a settlement with them a week prior to the short sale.
I have been vigilantly monitoring our credit through equifax. To my surprise BOA reported the account status as "Paid-in-full" with zero balance, and the late payments are noted. Citi initially reported "Charged-off" and showed a balance which didn't even account for the sum we paid in the settlement. I disputed this due to the settlement agreement and was able to get the balance completely removed, however the status is the same and the late paymments also appear.
Our credit was 800+ before this mess and my FICO is currently 707 after the dispute with a good range of revolving accounts, installmment, etc. Our utilization ratio is fairly low because at current our only debt is one car note at about $10k and a regularly paid credit card balance of about $1k.
My question is this. With the late payments when will we ever qualify for a mortgage? I have a feeeling that no matter how good our scores or other accounts this will continue to haunt us for the next 7 years. Any brokers here care to chime in? Am I doing the right thing by monitoring our credit and could I do anything to get the late payments mitigated? I do plan to file another dispute to request the 2nd be chanced from "charge-off" to "settled" or "paid-as-agreed" due to our negotiated settlement.
We both also have steady work history and combined annual income has been above $100K for at least the last 5 years.
Fast forward to today. The short sale was finally executed in May 2010, unfortunately we fell victim to the belief that our accounts had to be in distress to get this done. We could have and should have stayed current, sadly. The 1st (BOA) and 2nd (Citi HELOC) went 90+ days. Citi assigned the 2nd to a collector, we negotioted a settlement with them a week prior to the short sale.
I have been vigilantly monitoring our credit through equifax. To my surprise BOA reported the account status as "Paid-in-full" with zero balance, and the late payments are noted. Citi initially reported "Charged-off" and showed a balance which didn't even account for the sum we paid in the settlement. I disputed this due to the settlement agreement and was able to get the balance completely removed, however the status is the same and the late paymments also appear.
Our credit was 800+ before this mess and my FICO is currently 707 after the dispute with a good range of revolving accounts, installmment, etc. Our utilization ratio is fairly low because at current our only debt is one car note at about $10k and a regularly paid credit card balance of about $1k.
My question is this. With the late payments when will we ever qualify for a mortgage? I have a feeeling that no matter how good our scores or other accounts this will continue to haunt us for the next 7 years. Any brokers here care to chime in? Am I doing the right thing by monitoring our credit and could I do anything to get the late payments mitigated? I do plan to file another dispute to request the 2nd be chanced from "charge-off" to "settled" or "paid-as-agreed" due to our negotiated settlement.
We both also have steady work history and combined annual income has been above $100K for at least the last 5 years.
Hi leegrant,
After a short sale, you'll have to wait for 2-3 years in order to qualify for a new loan to buy another property. A short sale and the late payments will be mentioned in your credit report for the next 7 years. However, with time the adverse affects of the negative items will get lowered and you'll be able to qualify for a loan.
After a short sale, you'll have to wait for 2-3 years in order to qualify for a new loan to buy another property. A short sale and the late payments will be mentioned in your credit report for the next 7 years. However, with time the adverse affects of the negative items will get lowered and you'll be able to qualify for a loan.