Best way for short sale to be reported for scoring purposes?

[Anonymous]

In a short sale, what is the best way the lender could report the transaction to the credit reporting companies, for the home owners sake?

Is it PIF, Paid in Full, and nothing derog? Or is there other language that would not show any negative as to the transaction. Hope you understand the question, Thanks

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edit: This post was split off of Credit Scoring 101 to form its own thread. I'm starting it out here in Understanding FICO Scoring, but it might turn out to be better on Mortgages. --hauling

Message Edited by haulingthescoreup on 06-15-2008 05:26 AM

[Anonymous]

Paid in full is always best.

[Anonymous]

Best way and how they will report are 2 different things-

You will likely have a "settled for a lesser amount" and this will cause a FICO ding- but if you are not getting a FC or pre-FC or having to pay the difference on the short sale- $ wise beats FICO most days of the week.