This article examines the credit score impact of a short sale versus a foreclosure, and advises a strategic default as financially advantageous for California’s negative equity homeowners.

As of January 1, 2011, loan applicants will be informed of how their credit scores affect the mortgage rates offered from a lender. The new disclosure, to be given to borrowers before they enter into a loan, is the result of a consumer protection effort initiated by lawmakers in 2003. After a negative action has [...]

Lenders are making it more difficult for veterans to obtain Department of Veterans Affairs (VA) loans. Previously, veterans with no downpayment or low credit scores were typically able to get VA loans – in a large part because the Department of Veterans Affairs insures a quarter of the loan amount. However, while all the major [...]

This article discusses the impact negative mortgage events have on an individual’s Fair Isaac Company (FICO) credit score, and discusses the harm of lender over-reliance on scores in determining creditworthiness.

Homeowners who have gone through a short sale or participated in a deed-in-lieu arrangement with their lenders may, beginning July 1, 2010,  qualify  for new mortgages under Fannie Mae programs in as little as two years from the recording  of the short sale or deed-in-lieu arrangement. The current penalty period before recovery of credit is [...]

Premium borrowers may be even more likely to default on their mortgages than subprime homeowners, according to a study released by Fair Isaac Corporation (FICO). Currently, the mortgage default rate for all homeowners nationally is 4.5%. The rate for premium homeowners is 0.32%. Traditionally, borrowers were far more likely to default on their credit card [...]

This article discusses the loan application process leading up to a lender’s denial of credit to a homebuyer, and explains the steps the buyer’s selling agent can take to help avoid it.

Foreclosure resales accounted for 40.7% of all California resales recorded in the fourth quarter of 2009, down from 42.7% in the third quarter of 2009, and 54.4% one year ago. Lenders are experiencing a backlog in processing delinquencies and notices. 84,568 notices of default (NODs) were recorded last quarter, compared with 111,689 in the previous [...]