April 15, 2021 at 12:29 pm #75093Lab1234Participant
Between my spouse and I we have 3 short sales from over 10 years ago. If I don’t disclose this information during my NACA process, will this hurt us? Is there any way they can find this information without us disclosing it? Does this information appear on our credit report? Will lenders be able to find it on a system? I don’t think we have documents to show the short sales and if somethings needed, we don’t know where to start to find or locate them and are afraid it may take a long time to do so.
Thank you,April 15, 2021 at 1:21 pm #75094NelsontMember
If it’s not on your credit report they won’t find out. HOWEVER be sure to have all the documentation ready just in case.
In the meantime see this link below. You will NOT be disqualified.April 15, 2021 at 2:26 pm #75095TTrumbleMember
You just asked one of the most dangerous questions ever posed in this Forum: “If I don’t disclose this information during my NACA process, will this hurt us?”
The answer is YES, but not because you had the short sales. Your file will be terminated and you will be banned from the program because you deliberately withheld the information.
We might not come across the short sales during your qualification since they were so long ago, but Bank of America WILL find it once we have sent the loan application to them. Withholding that kind of information will raise red flags as to what else you may be hiding, and that will be the end of your file then and there even though the short sales would not have otherwise affected your file.
Also, by that point, you will have found a house, put down a deposit with the sellers and signed a contract. Your deposit will be forfeited to the sellers and the contract terminated. All because you chose to hide information that would have had no effect on you otherwise.
Short sales and foreclosures do not affect the NACA process as long as they are more than two years old. Deliberately withholding information that is potentially relevant to your situation however is completely unacceptable and can possibly even be interpreted as attempted mortgage fraud.
If you read through the Forum, you will see I commonly use the phrase, “Better twenty pages too many than one too few”. Since the crash in 2007, you don’t hide anything when it comes to getting a mortgage.
You need to be forthcoming about the past short sales. You will probably need to do nothing more than write a Letter of Explanation, and maybe provide documentation to support it just because it was more than one short sale. Start with your county’s Register of Deeds (at least that’s what they call it here) and track down the documents to show the short sales. It’s not going to be that difficult or take that long, so again, please stop trying to second-guess things. That’s what will make things more difficult for you. Just roll with the process and don’t be afraid to put in a little work.
I apologize for the “lecture”, but it really is that serious. Don’t try to second-guess the process and definitely don’t hide anything. Keep it upfront and honest, put in the work that’s needed, and you’ll be fine.
Online Operations, NACA
April 15, 2021 at 2:39 pm #75099Lab1234Participant
- This reply was modified 3 months, 2 weeks ago by TTrumble.
I truly appreciate this response and as much as I don’t want to hear it, I needed to hear it. I want to be honest and up front about it all, just wanted to know in a sense what is oversharing or deemed relevant. The short sales were in the past over a decade ago and I just didn’t know if it’s something I needed to bring to light or not. I haven’t gone through the NACA process yet and was trying to get a feel to see if this is something worth trying or will I just be denied. Again, I truly appreciate your response and do not see it as a lecture at all.
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