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Short Sales

boheme
New Contributor

Short Sales

Does anyone know the affect of a Short Sale on ones credit. Since it is a settlement with the lender, will it affect the credit report negatively or not even be reported. I am yet to see a short sale on a credit report, but with the number of people in default, I am curious as to how it would report. Thanks in advance for any insight.
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Brammy
Moderator Emeritus

Re: Short Sales



boheme wrote:
Does anyone know the affect of a Short Sale on ones credit. Since it is a settlement with the lender, will it affect the credit report negatively or not even be reported. I am yet to see a short sale on a credit report, but with the number of people in default, I am curious as to how it would report. Thanks in advance for any insight.


 
I assume you mean settling the debt for less than the amount owed, I would request tha the lender agree to report it Paid instead of settled.  If they charge off the rest it is still a charge off and yu may rceive a W9 to claim the difference as income.



Message Edited by Brammy on 04-17-2007 04:55 PM
Message 2 of 3
boheme
New Contributor

Re: Short Sales

Brammy,
 
Thanks for the feedback. Do you think if the consumer does not "request it to be reported as paid" that it will the negatively affect the credit?
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