what happens when you close a real estate deal as a short sale, well on your credit reporting? we are trying

Asked by Rita Kunakowsky, Avon, OH Sat Mar 15, 2008

now to consolodate our home equity with our home mortgage (the house we live and plan to reitre ine) and when our credit was ran the short sales is coming up as forelcosure? help

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Melinda J. R…, Agent, Grand Rapids, MI
Sat Mar 15, 2008
Rita, sorry to hear about your troubles. It has been my experience that in that short sale process you signed a document, I can't think of the name of it right now, but something to the effect of you are willing to participate in the short sale. Go back through your paperwork. I believe you should have something to that effect in there. It is a document the bank would have had you sign prior to closing.

Maybe you can use that to prove it was a short sale instead of a foreclosure. Your loan officer would have to take it from there and give you advice on how to work with the credit bureaus on this.

I hope this information helps! Best Wishes!
Web Reference:  http://www.gomelinda.com/
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Keith Sorem, Agent, Glendale, CA
Sat Mar 15, 2008
I think you need to talk with the lender with whom you did the short sale. The ideal comment is "settled". Yes, a short sale is going to negatively affect your credit rating, however it is not as bad as a foreclosure.

Generally part of the short sale negotiation is how you and the lender agree to characterize the transaction. So before the short sale concludes, all parties have a clear understanding as to how the account will be closed, and "settled" is the preferred term.
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