Comments on: Short sales, your credit & whether you should keep paying your mortgage payments

By: Denise

Denise — Tue, 19 Jan 2010 19:07:05 +0000

I was told we have two things that help us with foregivness….divorce and loss of a job…..is that true.

By: Denise

Denise — Tue, 19 Jan 2010 19:05:47 +0000

My ex lost his job….found another several month later making less than half of his wages. His current job is not steady income. We HAD to divorce or separate for my own protection for so we could not live in the same house and this happened over night. The house had been on the the market for some time and it was no longer worth what we had paid for it. we could see the house short selling and was struggling with keeping the lights on for him and my son…..credit cards went late and so on and so forth. He stopped paying the mortgage and I pay rent my daughter and I.

By: kevin_kim

kevin_kim — Tue, 19 Jan 2010 18:48:21 +0000

You probably have a 90 date late as well as an “in collections” item on your credit report. Not knowing your situation, I do know that once you “stop the problem,” it is possible to remove those items:

http://seattleshortsaleblog.com/credit-deletion/

By: Denise

Denise — Tue, 19 Jan 2010 18:42:25 +0000

My ex husband and I were seperated over a year ago and we divorced approx 8 months ago. he has been living in the house. He has not paid the mortgage in 8 months. He has also not paid the 2nd mortgage in 8 months. Do they keep dinging our credit every month after the 90 days?

By: Kevin Kim

Kevin Kim — Mon, 11 Jan 2010 19:07:22 +0000

30-60-90 day late payments CAN be reported to the bureaus, but there are ways to remove them:

Visit this section and follow the link: http://seattleshortsaleblog.com/credit-deletion/

As far as whether you should continue to pursue a loan modification or sell, it depends on whether your property is worth holding on to

Will you be able to break even on your rental after modifying your mortgage or will you still be losing money?

Will the property be worth significantly more than what you purchased for 3-4 years later?

By: eli

eli — Sat, 09 Jan 2010 04:53:46 +0000

Hi Kevin,

My husband and I relocated to another state after my husband’s military contract expired in 2008 and I had a job transfer as well. We tried to sell our house in WA state but have been unable to do so. Finally we rented the house, but the rent only covers about half the mortgage, we have basically been struggling for 2 years. Recently we lost our renters and agreed to a 2 month forbearance with a loan modification application in process. Our credit score has dropped about 100 points due the the lender reporting us 30 – 60 days past due even though we are on a forbearance (and before this had perfect payment history for 3+ years), can they do this? We thought they weren’t supposed to report us as delinquent while in approved forbearance and worse yet a credit score drop of 100 points. Is it worth even trying to make a payment plan and continue to try to pursue a loan modification, it seems that we get penalized either way.

Thank You!!

By: kevin_kim

kevin_kim — Mon, 09 Nov 2009 21:59:09 +0000

I’ve sent you an email, we have 5 negotiators in California. Thanks.

By: kevin_kim

kevin_kim — Mon, 09 Nov 2009 21:57:52 +0000

Jenny,

I think you are making the right decision by paying off credit card debt. If you cash in your savings, the lenders generally will want it

By: Jenny

Jenny — Mon, 09 Nov 2009 14:55:33 +0000

We are in the process of doing a short sale on our house in WA. We recently recieved a cash gift and are wanting to pay off some credit card debt. Will paying off the debt affect the short sale? Thanks for your time.

By: Armando Perez

Armando Perez — Sun, 08 Nov 2009 21:11:48 +0000

Kevin, I am a realtor in West Covina , Ca and am seeking a short sale nogotiator to process and mitigate my Short Sale listings.

Please provide a referral contact name and number.

Thanks

Armando Perez
Global Realty
626.840.7632