Sliver of Good News after the Credit and Reputation Destruction of a Short Sale and charge Off

[shobam]

I was brought to the brink by a rapid fire of bad circumstances, had to sell my house in a Short Sale. E*TRADE PNC/ CLC took my last 7.5K from me at closing to release a lien and then the next week charged off the balance. Was 150 late on my mortgage when the closing finally happened. Was Current With E*Trade. Would have worked out something with E*TRADE had I known that they would do that. My credit score was 805 the day we started the SS (3/2009) and a month after closing (11/2010) it was 538. Today its about 620, still have a CO on my reports. Took the adivise of many of you a sought out a small Credit Union to see if I open an a savings and checking account because my "big bank" that we have been with for 6 years won't help us with anything going forward. Told us so. We still have our primary home with about 80K of equity in it even in this market. A small local credit union that caters to my company set me up with a saving and checking account. They said that after 6 months come in and see them. They will be able to help me do a Refi on my primary which is an ARM. They also do personal loans if I want to consolidate some old CC bills from when my wife was sick. They would require that I have any loan payments be paid via direct withdrawal - Thats OK with me if I'm going to pay them anyway.

So the "small local credit union of town bank" theory just might be true.

[LoanModHelpCenter.com]

Awesome news. Credit Unions are great. There are tons of benefits to have an account at a CU to replace or in addition to your "Big Bank" account. Not only do they have REALLY LOW rates....like insanely low, but because they are private and "owned" by their members, they are very flexible when it comes to loans and qualifying for loans. Not to mention can be a great tax shelter for those who know how to work the system. Hope everything continues to work out. Keep us posted.

[rn583764]

Was this an investment property that you short sales on? When they did the charge off, did they send you a 1099-c?

[shobam]

Was this an investment property that you short sales on? When they did the charge off, did they send you a 1099-c?

It was my home that i bought before i got married to my current wife. After we got married, I moved in with her, in her house and we rented/let relatives stay in my "old house for the last 5 years leading up to the short sale. During the short sale I changed my address back to that old address for tax purposes, kept it like that for the sale. Yes; we did get a 1099 for the 1st mortgage with BofA, but they stipulated that in the SS acceptance letter. The lien holder E*TRADE did not send me a 1009 as they are seeking a settlement.

hope that answers your question.