House Sold in 2012 Still on Report??

pf9312 · ‎03-29-2014

We sold our house in 2012 as a short sale (was in October of that year and was with BoA) and to this day it shows as an "open" account with the balance being the $111K we owed at the time. It shows up on my report to this day as open. Also the current status makes no mention of a short sale or the account in any way being closed. Am I missing something here or does this sound like something I should dispute? And if so, what effect if any is it having on me credit score?

azguy13 · ‎03-29-2014

@pf9312 wrote:
We sold our house in 2012 as a short sale (was in October of that year and was with BoA) and to this day it shows as an "open" account with the balance being the $111K we owed at the time. It shows up on my report to this day as open. Also the current status makes no mention of a short sale or the account in any way being closed. Am I missing something here or does this sound like something I should dispute? And if so, what effect if any is it having on me credit score?

This is actually a nice little conundrum, lol. On one hand, you no longer have a mortgage and it is inaccurately reporting. On the other hand, if you dispute with the CRA it will show a closed short sale and lower your score a decent amount.

The right thing to do is to dispute it and have it report accurately. On the other hand, if you want to apply for anything in the near future, I would apply prior to disputing.

pf9312 · ‎03-29-2014

Hey azguy, thanks for the reply. So you think a closed short sale would have more of a negative impact than an open mortgage with no payments since 2012 would have a positive impact? I had considered both and wondered if having it changed to show it closed with no balance, albeit by a short sale, would actually raise it a few points.

azguy13 · ‎03-29-2014

@pf9312 wrote:
Hey azguy, thanks for the reply. So you think a closed short sale would have more of a negative impact than an open mortgage with no payments since 2012 would have a positive impact? I had considered both and wondered if having it changed to show it closed with no balance, albeit by a short sale, would actually raise it a few points.

As long as that mortgage is not reporting 30,60,90,120+ day lates then it is not negatively effecting your report. If it is closed and updated correctly, you will lose points for both not reporting an open mortgage anymore (open mortgages raise your score) as well as showing the short sale. I cannot give you an accurate number for point drop though.

I just sold my home last month so I am expecting up to a 10 point decrease for no longer reporting an open mortgage