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You've entered that into Equator and they took it?
This has been going on for quite a while, google it, and you'll see - Equator doesn't "need" a social security number. 0's work fine.
If the short-sale lender requests the buyer's social security number, it isn't because they "need" it, it's because they want to pull the buyer's credit & try to sell them a mortgage. It isn't kosher, it isn't "necessary", and they will cave if you raise a stink.
Nah - That is prevalent but is another gimmick. The SS digits are part of an attempt to avoid short sale fraud...that is a seller effectively buying back his own mortgage at the lower value.
This has been going on for quite a while, google it, and you'll see - Equator doesn't "need" a social security number. 0's work fine.
If the short-sale lender requests the buyer's social security number, it isn't because they "need" it, it's because they want to pull the buyer's credit & try to sell them a mortgage. It isn't kosher, it isn't "necessary", and they will cave if you raise a stink.
Nationstar is one of the worst for that BS.
The buyer's haven't been harassed by Nationstar on this short sale at all and they (Nationstar) have been decent to work with. Not the best but not the worst either. I've never had a client be harassed to have a loan on a short sale and I've done shorts with Wells, BofA, Aurora, HSBC, GreenTree and Chase. Bank REO's, yes, but not on a short sale. Your information hasn't been my experience at all.
Yes, they want to pull the buyer's credit so they can confirm they will likely qualify for financing. The preapproval letter is only as good as the lender issuing it and the banks have no way of knowing if they have a quality lender on the other side.
The buyer's haven't been harassed by Nationstar on this short sale at all and they (Nationstar) have been decent to work with. Not the best but not the worst either. I've never had a client be harassed to have a loan on a short sale and I've done shorts with Wells, BofA, Aurora, HSBC, GreenTree and Chase. Bank REO's, yes, but not on a short sale. Your information hasn't been my experience at all.
Yes, they want to pull the buyer's credit so they can confirm they will likely qualify for financing. The preapproval letter is only as good as the lender issuing it and the banks have no way of knowing if they have a quality lender on the other side.
There's no *need* to pull the buyers credit. Pulling it unnecessarily drops the buyer's credit score and could conceivably cost the buyer money. Dropping from 760 to 759 can cost the buyer a higher rate.
Normal sellers don't pull a buyer's credit, not sure why a lender, who isn't a party to the sales agreement has any right to pull credit. When you question them about it, you'll be told "it's the law", "it stops fraud", "patriot act" or whatever other excuse of the moment they can come up with.
The bottom line is they don't need it.
From a buyer's perspective, if it's a Nationstar short sale, we *know* the lender on the sellers side isn't "quality". Nationstar's portfolio is comprised of the dregs of the sub-prime world.
There's no *need* to pull the buyers credit. Pulling it unnecessarily drops the buyer's credit score and could conceivably cost the buyer money. Dropping from 760 to 759 can cost the buyer a higher rate.
Normal sellers don't pull a buyer's credit, not sure why a lender, who isn't a party to the sales agreement has any right to pull credit. When you question them about it, you'll be told "it's the law", "it stops fraud", "patriot act" or whatever other excuse of the moment they can come up with.
The bottom line is they don't need it.
From a buyer's perspective, if it's a Nationstar short sale, we *know* the lender on the sellers side isn't "quality". Nationstar's portfolio is comprised of the dregs of the sub-prime world.
YOu can check any number of data bases off partial SS numbers. I don't believe BofA at least, nor any other lender has a right to pull a credit score without permission. And they don't ask for it.
So no a credit report is not the reason for the SS number.
There's no *need* to pull the buyers credit. Pulling it unnecessarily drops the buyer's credit score and could conceivably cost the buyer money. Dropping from 760 to 759 can cost the buyer a higher rate.
Normal sellers don't pull a buyer's credit, not sure why a lender, who isn't a party to the sales agreement has any right to pull credit. When you question them about it, you'll be told "it's the law", "it stops fraud", "patriot act" or whatever other excuse of the moment they can come up with.
The bottom line is they don't need it.
From a buyer's perspective, if it's a Nationstar short sale, we *know* the lender on the sellers side isn't "quality". Nationstar's portfolio is comprised of the dregs of the sub-prime world.
No. When you are in the buying process pulling several credit reports won't drop your score. They don't drop it so that consumers have the opportunity to shop rates.
Are you a real estate agent? Your information doesn't jive with reality.
No. When you are in the buying process pulling several credit reports won't drop your score. They don't drop it so that consumers have the opportunity to shop rates.
Are you a real estate agent? Your information doesn't jive with reality.
I'm afraid it's *you* that needs to go to school about this issue.
Every inquiry stays on your credit report for 24 months.
According to myfico.com, "your FICO score considers all inquiries within a 2 week period for an auto or mortgage as a single inquiry."
Qualified homebuyer believes it's a great time to buy a house, on January 1, 2013. Speaks to agent, who advises them to "prequalify" for a mortgage *before* looking at any houses. They immediately go to the friendly banker suggested by the agent.
Hard pull on buyer's credit for prequalifying on January 1. <---- 14 day clock starts here!
Buyer starts looking at houses, finds the "perfect house" on January 2.
Offer written, accepted & shipped off to aww, let's say "Nationstar" on January 3.
Does Nationstar pull credit & approve a short-sale in 11 days?
The answer is *no*.
Buyer now has two "dings" on their otherwise perfect credit.
After Nationstar does their (unnecessary) hard pull on the buyer's credit, does Nationstar send the written short-sale approval letter in a hurry, so the buyer can actually apply for a mortgage within the 14 day window, and avoid a third ding to their credit?
The answer is *no*.
What if Nationstar is the second, or there is a different second mortgage holder... more delays...
Sooo.. the buyer gets their approval letter, applies for a mortgage, and of course, another hard-pull is necessary.
Since it takes over 14 days to process the mortgage, and the buyer's lender is cautious, they pull credit *again* the day before closing.
Now you've got *four* inquiries on your well-guarded & perfect credit.
For an "uncomplicated" and "easy" short-sale.
What happens if the sale drags on, you decide to change lenders, perhaps "update" your pre-approval letter & write other offers, because you can't be certain *this* deal is going to close?...
What if you're an investor, and you're trying to buy *more than one* short sale?
Well, Myfico.com has an answer for that...
" Inquiries can have a greater impact, however, if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk: people with six inquiries or more on their credit reports are eight times more likely to declare bankruptcy than people with no inquiries on their reports "
I just showed you how easy it was to get *four* inquiries on a perfect, "easy" deal.
If your buyer applies or has applied for *any* credit in the past 24 months, they're going into the "might declare bankruptcy" bucket. An 800 fico can drop to below 760 pretty easily at that point.
Buying a house is a major life change - and it will often cause a buyer to re-evaluate all of their bills -
Let's hook up satellite TV to that new home.. oops, there's another inquiry, and a "ding" to your credit..
Qualified homebuyer believes it's a great time to buy a house, on January 1, 2013. Speaks to agent, who advises them to "prequalify" for a mortgage *before* looking at any houses. They immediately go to the friendly banker suggested by the agent.
Hard pull on buyer's credit for prequalifying on January 1. <---- 14 day clock starts here!
Buyer starts looking at houses, finds the "perfect house" on January 2.
Offer written, accepted & shipped off to aww, let's say "Nationstar" on January 3.
Does Nationstar pull credit & approve a short-sale in 11 days?
The answer is *no*.
Buyer now has two "dings" on their otherwise perfect credit.
After Nationstar does their (unnecessary) hard pull on the buyer's credit, does Nationstar send the written short-sale approval letter in a hurry, so the buyer can actually apply for a mortgage within the 14 day window, and avoid a third ding to their credit?
The answer is *no*.
What if Nationstar is the second, or there is a different second mortgage holder... more delays...
Sooo.. the buyer gets their approval letter, applies for a mortgage, and of course, another hard-pull is necessary.
Since it takes over 14 days to process the mortgage, and the buyer's lender is cautious, they pull credit *again* the day before closing.
Now you've got *four* inquiries on your well-guarded & perfect credit.
For an "uncomplicated" and "easy" short-sale.
What happens if the sale drags on, you decide to change lenders, perhaps "update" your pre-approval letter & write other offers, because you can't be certain *this* deal is going to close?...
What if you're an investor, and you're trying to buy *more than one* short sale?
Well, Myfico.com has an answer for that...
" Inquiries can have a greater impact, however, if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk: people with six inquiries or more on their credit reports are eight times more likely to declare bankruptcy than people with no inquiries on their reports "
I just showed you how easy it was to get *four* inquiries on a perfect, "easy" deal.
If your buyer applies or has applied for *any* credit in the past 24 months, they're going into the "might declare bankruptcy" bucket. An 800 fico can drop to below 760 pretty easily at that point.
Buying a house is a major life change - and it will often cause a buyer to re-evaluate all of their bills -
Let's hook up satellite TV to that new home.. oops, there's another inquiry, and a "ding" to your credit..
"I think any bank that uses Equator asks for a part of the SS#"
That depends on the type of financing of the Seller's loan, who the investors or servicers are, the mood of the Equator negotiator, and the time of day. (They tend to change the software and requirements regularly throughout the negotiations, which is maddening) I worked on four Short Sales in Equator (Wells Fargo and BofA) this year and none of them asked for the Buyer's SS#. I have seen it in the past, though. I met the Vice President of Short Sales of BofA a few years ago and asked him about it - he said it was to prevent buyer fraud. I assume that means flipping and flopping houses and other common Short Sale shenanigans.
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