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    Short sale approval letter

    Also posted in "Foreclosure" section:

    Short sale approval letter questions
    We are going through a short sale with Wells Fargo. Our Ch 7 was discharged June 2010. Did NOT reaffirm mortgages (1st & 2nd).

    Got a "approval letter" from WF and part of the verbage is:

    “As agreed, when we receive the sale proceeds and all required documentation, we will notify the credit bureau to reflect “agreed settlement short of full payment” which would appear on the credit report within 60-90 days from the sale date and within 60-90 days from the date of notification”As far as I know they are not allowed to report anything further to our credit because the debt was discharged.

    We are getting pressure from the realtor to just accept it, even though he has no knowledge of BK laws... I have spent the last 9 months cleaning up our credit and it all reads IIB discharged in CH 7. Our scores are over 660.

    Can anyone chime in? What are our rights? Should be accept this?

    #2
    They are not allowed to post that to the credit bureau as that would be a violation of the discharge injunction since it is viewed that credit entries are an "attempt to collect a debt". I would just "strike" the paragraph -- of offending sentence -- and initial the strikeout!
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      Originally posted by justbroke View Post
      They are not allowed to post that to the credit bureau as that would be a violation of the discharge injunction since it is viewed that credit entries are an "attempt to collect a debt". I would just "strike" the paragraph -- of offending sentence -- and initial the strikeout!
      That's what I thought. How sneaky of them. I called them this pm and spelt it out and the woman replied "we're still going to do it and you can deal with it later".

      They don't give a damn... We've typed a letter we'll fax to them tomorrow. No doubt they will cancel the approval. Not that we care much, but I am expecting some nasty phone calls from our real estate agent. Missing out on his commission is a no-no! The whole thing stinks like a dead fish. They can have the house back, via foreclosure!

      Comment


        #4
        I wouldn't worry about what some Clerk states. Most of the larger banks, and Wells is one of them, have systems that see the "bankruptcy" flag and will never report that account again! I would just strike the paragraph, initial it, and let it be.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment


          #5
          Lots of pushy real estate agents around lately!
          Filed Ch 7 Pro Se 11-18-2010 341 Meeting 12-16-2010 Discharged 2-15-2011
          New Job 7-2011

          Comment


            #6
            I'm curious to know, why, since the debt was already discharged, you are bothering with the aggravation of doing a short sale at all. Let the bank foreclose, and take their expensive lumps. You've got your fresh start, and owe nobody any effort on that house at all....

            But if you do go through it and they do "do it anyway" you can make it hurt for them later.
            Figured out we were in trouble: (Wait, we're in trouble? ) Stopped paying creditors: Aug 2010 Filed Chap 7: Apr 29, 2011 341: Jun 1, 2011 Report of no distribution: Jun 1, 2011 Discharged Aug 2, 2011

            Comment


              #7
              I'm curious if anyone knows...would the status of "agreed settlement short of full payment" or "incuded in bankruptcy" have a more positive affect on the credit score?
              Filed Non-Consumer Chapter 7: 07/31/2009
              341 Hearing: 09/03/2009
              Last Day for Creditor's Objections: 11/02/2009
              Discharged! 11/03/2009 CLOSED! 01/05/2010

              Comment


                #8
                Originally posted by StartinOver View Post
                I'm curious to know, why, since the debt was already discharged, you are bothering with the aggravation of doing a short sale at all. Let the bank foreclose, and take their expensive lumps. You've got your fresh start, and owe nobody any effort on that house at all....

                But if you do go through it and they do "do it anyway" you can make it hurt for them later.
                I swear if we knew it was going to be this much hassle and pressure from realtors, we would have just let it go into foreclosure.

                We opted for SS just to make us feel a little better about the whole situation. Our neighbors are all good friends and we didn't want to burden them with yet another foreclosure driving down their home values. It was just an attempt for us to exit gracefully.

                Big mistake, obviously!

                Comment


                  #9
                  Lots of pushy real estate agents around lately!
                  It bothers me so much to hear this but I know it's true. I am a Realtor and I have to deal with these pushy agents too. But please know, there are a lot of ethical real estate agents out there who are professional enough to put their client's needs first. They are working hard to help their clients through these tough times and do so with sensitivity and compassion. I have helped many clients in the same situation as you (and me). First, I make sure they truly want to sell their home. If they want to keep it, I help them in any way I can with a loan mod request. If they list their home, I make it clear, if anything changes and they want to cancel the listing, I will immediately do so and they will have no obligation to me. There are many agents advertising they handle short sales. Make sure to find one that is truly ooking out for your interest, not theirs.
                  Filed Non-Consumer Chapter 7: 07/31/2009
                  341 Hearing: 09/03/2009
                  Last Day for Creditor's Objections: 11/02/2009
                  Discharged! 11/03/2009 CLOSED! 01/05/2010

                  Comment

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