Short sales

[Anonymous]

How long after a short sale can the record be removed from our credit history?

[dragontears]

I assume 7 years like any other negative credit information

[Anonymous]

So you think same as bankruptcies and foreclosures? I had heard there was some kind of 2 year guidance lenders used.

[Anonymous]

It will remain on your report for 7 years, however some lenders will lend to your after it has aged for 18months to 2 years

[Anonymous]

Good to know!

[Marcos8]

Typically short sales are listed as settled/paid in full for less than full balance with the remaining unpaid balance charged off and the account is closed in derogatory status . That means it Should typically stay on the report for 7 years. 

[RobertEG]

It depends upon whether the short sale resulted in an equivalent to a charge to profit and loss by the creditor.

Charges to profit and loss, or their equivalent, have a credit report exclusion date of no later than 7 years plus 180 days from the reported DOFD, and not from the date of the short sale.  FCRA 605(a)(4) and 605(c).

Otherwise, the reporting would fall under the catch-all provision of FCRA 605(a)(5), which states that any other item of information not specifically listed under a subparagraph of section 605(a) has an exclusion date of 7 years from the date of the adverse item, which in this case would be 7 years from the date of the short sale itself, and not the DOFD.