Short sale reported as foreclosure on credit report
Quite few people go through the process of a short sale of their home, but then the lender(s) will report it as a short sale on their credit report!
If a short sale is not reported accurately on your credit report then the account should be deleted per the FCRA (Fair Credit Reporting Act)
True, a short sale is less damaging to credit than a foreclosure but, unfortunately, short sale information isn’t accurately reported on people’s credit reports. Short sale reporting per se isn’t what destroys FICO scores, rather its the mortgage late payments that most homeowners have when they do a short sale that hurts their credit. A 90-120 day late payment on a mortgage account negatively affects FICO scores almost as much as a foreclosure. And, late payments negatively affect the opinion of an underwriter evaluating an applicant for new credit.
Starting over is proving to be very difficult in this climate. But, the good news is that the law is on the side of consumers. Inaccurately or erroniously reported accounts can, and should be, removed from credit.
Removing foreclosures or short sales from credit can be done legally in 6 easy steps. We want people to get a fresh start and not be needlessly hurt by inaccurate credit reporting.
Related Reading:
- Wells Fargo Short Sale / Credit Reporting No lates – Loan … – I am going to be recieving a short sale approval with Wells Fargo. I am current on my payments. Has anyone negotiated a Paid, Never late credit bureau.
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