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In October of 2009 I completed a short sale with BofA. There were never late payments and an investor took the property for a short-sale.
My thinking was this was better for my credit report, but 5 1/2 years later my TransUnion says "Settled - Less than full balance" with that account.
My TransUnion report says I have a "Derogatory" but it does not say which one specifically, and no other accounts have ever been late. I'm assuming this "Settled - Less than full balance" is the culprit and I believe it did give me a serious hit in 2009. My score has improved.
Is there any way to deal with this? Will the bank help me? Or do I have to wait 7 years like a foreclosure?
The short sale, without late payments, seems to be affecting me similarly than a foreclosure nearly 6 years later, when I was told it would be around 3 for a short-sale to be removed.
In October of 2009 I completed a short sale with BofA. There were never late payments and an investor took the property for a short-sale.
My thinking was this was better for my credit report, but 5 1/2 years later my TransUnion says "Settled - Less than full balance" with that account.
My TransUnion report says I have a "Derogatory" but it does not say which one specifically, and no other accounts have ever been late. I'm assuming this "Settled - Less than full balance" is the culprit and I believe it did give me a serious hit in 2009. My score has improved.
Is there any way to deal with this? Will the bank help me? Or do I have to wait 7 years like a foreclosure?
The short sale, without late payments, seems to be affecting me similarly than a foreclosure nearly 6 years later, when I was told it would be around 3 for a short-sale to be removed.
THANKS TO ANYONE LISTENING AND RESPONDING!
Jeff
I'm not sure what sort of help you expect. It's a credit report. It reports your credit activity. Not for YOUR benefit, but for the benefit of any lender who might be considering extending credit to you. If the report is accurate, what reason would there be to alter it?
Now, as it seems you are unsure if this is the item that is showing up, you might want to research that. Make sure it's not something else, something inaccurate. If it's inaccurate, then by all means you should be able to have it corrected.
In October of 2009 I completed a short sale with BofA. There were never late payments and an investor took the property for a short-sale.
My thinking was this was better for my credit report, but 5 1/2 years later my TransUnion says "Settled - Less than full balance" with that account.
My TransUnion report says I have a "Derogatory" but it does not say which one specifically, and no other accounts have ever been late. I'm assuming this "Settled - Less than full balance" is the culprit and I believe it did give me a serious hit in 2009. My score has improved.
Is there any way to deal with this? Will the bank help me? Or do I have to wait 7 years like a foreclosure?
The short sale, without late payments, seems to be affecting me similarly than a foreclosure nearly 6 years later, when I was told it would be around 3 for a short-sale to be removed.
THANKS TO ANYONE LISTENING AND RESPONDING!
Jeff
A short sale IS "Settled - Less than full balance", so that is being reported accurately. You can't get it removed if it is accurate.
I don't know who told you it would be removed after 3 years, but that is totally false, and has never been true. I've never heard of any items that are removed from your credit in less than 7 years, some stay for 10. What you were probably told, and misunderstood, is that depending on the type of loan you want to get, you can possibly buy another house after 2 or 3 years, whereas a foreclosure, you have to wait longer.
When you say it is still affecting you 6 years later...are you trying to buy another house and can't because of the short sale? Because that shouldn't be happening, find a different lender. But if you are just saying it is impacting your score, then yes, that would be correct.
I'm not sure if short sales drop off after 7 years or if they are one of the items that stay on for 10 years.
A short sale is listed on the credit report for seven years, vs a foreclosure remaining on for 10 years. Failing to pay your mortgage debt in full will always have a very negative affect on your credit scores. With time, the negative impact on your credit scores will decrease. "Settled - Less than full balance" is more damaging vs "Settled - as agreed". How the lender was going to report the transaction to the credit bureaus, should of been negotiated as a condition of the settlement. Unless you are kin to Dr Who and can travel back in time. You are going to have to live with this.
One thing you can do to manipulate your credit score higher. Is paying more than the agreed upon payments for bills that get reported to the credit bureaus. It has more of a positive effect on secured debt like mortgage, car loans, loans with a fixed payment and a known end date. Doing so - you get reported as being more responsible to your credit score dramatically shoots up!
Something you should do is get a free copy directly from Experian, Transunion, and Experian.
Do-not-go to free credit report sites like Credit Krama. After providing all your information and clicking through their webpages, you end up on the three credit bureau sites anyway. I shake my head knowing how how much money they make collecting and selling people’s personal information, and people getting inidated with junk email and Scams.
Thanks for the all the amazing and quick responses. Yes, it seems a time machine would help as I was told various information back when all this was happening. It was happening to so many people and new government help was just getting passed, the people I spoke with were not sure what to tell me. It just seemed a short sale was "better" than a foreclosure.
The reason I asked was because of Credit Report "helping services" and was wondering if they had the skills to say call a bank and negotiate with them to change the reporting sooner like "this guy is solid and no other negative effects have been reported ever, so can we call this "time served" and get that to say settled as agreed or something less derogatory?"
I was reading about like Lexington Law and wondering if there were negotiations and plea deals to be had, Better Call Saul style. I might buy a house later in the year but also I've been turned down for some credit and or the rate is very high due to the "derogatory" that a computer algorithm sees when checking.
If I have to wait another year I'll live...it is disappointing to know that a short sale is not much better to other lenders except maybe if buying a house it sounds like. It seemed at the time the lesser of two evils. My score has improved a bunch but it would shoot up without the derogatory...and that is where I was wondering if things are negotiable. That's all.
Thanks for listening and I'm glad I found this forum.
Jeff
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