Tuesday's Tips (for Sellers and Buyers)

Seller Tip # 1 - Several months after your short sale transaction make sure to review your credit report to learn how the Lender reported your transaction. If you need to dispute the report be sure you have a copy of the short sale approval letter issued by the Lender. A client who had waited the mandatory three years was now ready to purchase a new home, he had saved the twenty percent down payment, made sure to be on time with all payments and was excited to begin the search for his new home. Low and behold we discovered someone had mistakenly reported the "settled short sale" as a foreclosure.

The client was required to contact all three credit bureaus and dispute the reporting. He was required to get a letter from the Lender stating this was erroneously reported, wait while the credit bureau representative spoke with the short sale negotiator (we were lucky she was still employed with the bank in the same department) and finally the reporting was changed to "settled."

Fortunately because we had a copy of the short sale approval letter we were able to resolve this matter after several weeks and we are now shopping for a new home.  However I recommend as part of your annual credit check be sure to review your credit report from all three bureaus.  The FTC recommends this review to make sure the information is accurate before applying for a new loan.You are entitled to an "annual free credit file disclaimer, known as a credit report, from each of the nationwide consumer credit reporting companies:"

Experian - 1-800-685-1111 www.eperian.com

Equifax - 1-888-397-3742 www.exquifax.com

Trans Union - 1-800-916-880 www.transunion.com

Buyer Tip # 1 - Multiple inquiries can hurt your credit report by several points. You may request that consumer credit reporting exclude your name from unsolicited credit card offer by calling 1-888-5OPTOUT or (1-888-567-8688.) A client just qualified for a new construction home but was dismayed to discover her FICO score had dropped over the last year. One of the reasons cited was too many inquiries.

While working with different clients, agents recognize that each transaction is unique however some experiences are universally shared. These credit tips should help to create a smoother transaction for both a buyer and seller.

If you need assistance or have questions about the buying or selling of real estate in Riverside or surrounding areas - Call me!