is it true you can do a short sale and negotiate how it will be reported on your credit?

Asked by Julie, Central Valley, CA Tue Feb 3, 2009

I've been told banks are willing to negotiate on this so that the short sale won't be reported as a short sale, but as "account closed" (best case scenario, 0 impact on credit) or "account closed for less than amount owed" (worst case, still better for credit than a short sale, loss of about 60 points on credit score). I'm being told this by a company who wants me as a loss mitigation client and they know I'd like to get rid of my house and buy another one.

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Rick McGrath, Agent, Modesto, CA
Tue May 21, 2013
Good Question. Yes all things are possible however, more often than not, the banks are in the drivers seat and play hard ball. It's take it or leave it! They know you want out and they also know they are going to take a big hit. They usually feel that you should suffer. After doing over 200 successful short sales, more often than not, unless you keep your mortgage payments current, you won't be able to repurchase for a few years.
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Rocky G.H. H…, Agent, Ripon, CA
Mon Dec 12, 2011
Yes - its up to the lender. Most times they report that the loan was paid off for less that what was owed. The good news is you can be back in position to purchase a home sooner than you think. However, you have to follow a few basic rules to get it done.

Rocky G.H. Hawrysz | Prudential California Realty
(209) 444-6610 – Direct | | | License No. 01468373
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, ,
Mon Nov 7, 2011
Absolutely up to your lender and no one else. Being proactive is the best approach.
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Carol Perdew, Agent, Manteca, CA
Sun Nov 6, 2011

Short sale lenders typically chooses the way they will report a short sale on the seller’s credit. Many of the short sale approval letters indicate how the short sale lender will be reporting the short sale on the seller’s credit. You can try contacting your lender to find out their procedure of reporting a short sales.

Some of my clients have tried working with a loss mitigation company but have not had good results. Short sale lenders typically don’t like working with 3rd party companies instead of working directly with the homeowner. You may ask the loss mitigation company you are considering for a reference letter from several clients they have had success helping with their short sales.

Carol Perdew
Prudential California Realty
(209) 239-7979
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Dallas Texas, Agent, Dallas, TN
Tue Feb 3, 2009
It all depends on lender however recommend have all in writing. Each account file, lender have different ways report short sales .
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