How Are Short Sales Reported To The Credit Bureaus?
FICO does not differentiate between a foreclosure and a short sale. Further complicating matters, lenders don’t have a uniform standard as to how they report a short sale to the credit bureaus. Some lenders report short sales as “settled as agreed” while others may report it as “account legally paid in full for less than the full balance.” In some cases, if the account is more than 120 days past due, the short sale will automatically show up as a “foreclosure” on the credit report.Both a short sale and a foreclosure will report on your credit for seven years from the date of first delinquency.
Meanwhile, if you or someone you know is struggling with an upside-down property in California and don't know what to do, Contact Tami Saner HAFA Certified Short Sale Specialist for a FREE Consultation Program we can offer knowledge of what to expect and form strategies to either keep the property or move on with as little financial risk as possible. To schedule a Consultation, please contact Tami Saner direct at 916 417-6162.
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