QUESTION
What can we do if our mortgage company gave us incorrect information that hurt our credit?
Asked on Dec 04th, 2011 on Foreclosures - Nevada
More details to this question:
We needed to short sale our condo due to financial difficulty. Our mortgage company informed us we would not qualify for a short sale unless we were at least 60 days late on our payments. So, we stopped making payments and upon closing, we were 90 days late (we closed 6 months ago and are now renting). Because of this, our credit scores have taken a hit and we are not eligible for a new mortgage for at least three years. I got a new job and have a higher income now, just can't qualify for mortgage because of the 90 days late. We had no desire to be late on payments and always pay all obligations on time. Our mortgage was a [company name] owned mortgage. Turns out, we didn't need to be late on our payments in order to qualify for the short sale, according to [company name], who owned our loan. Our mortgage company told us incorrect information. Is there anything we can do or are we out of luck?
1 ANSWER
Unfortunately you are out of luck. The credit hit from a short sale is inevitable, and would be there regardless of how late you were in your payments, and while many banks officially say that you do not have to be late in payments, short sales are rarely approved for mortgages that are not in default. I'm not saying that there's not a technical legal argument against what they did, but I dont think its an argument any judge would accept, and I'd consider such a suit a waste of your money.
Answered on Dec 09th, 2011 at 9:53 AM