Does a short-sale of real estate equate to a foreclosure? |
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Gilderod55
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Does a short-sale of real estate equate to a foreclosure? |
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We sold our house in 2011 during the real estate crisis (and gov't bailout). We successfully sold our residence via a short-sale; HUD-1 to document it. It was not a foreclosure. On our credit report lists it as a "Foreclosure, Collateral Sold". Is this standard procedure? If not, is it grounds for a dispute?
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Thu May 02, 2013 5:10 am |
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littleroc02us
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Re: Does a short-sale of real estate equate to a foreclosure |
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quote: Originally posted by Gilderod55 We sold our house in 2011 during the real estate crisis (and gov't bailout). We successfully sold our residence via a short-sale; HUD-1 to document it. It was not a foreclosure. On our credit report lists it as a "Foreclosure, Collateral Sold". Is this standard procedure? If not, is it grounds for a dispute?
I've read horror stories about this type of problem. Some lenders will list a short sale as a foreclosure, some will list it as paid in full, some will list it as a short sale. From what I've seen is that you may want to write your lender a request letter to alter their submissions to the credit bureau's and if that doesn't work try writing to the 3 credit bureau's and if that doesn't work then get the Chamber of Commerce involved.
I'd be interested in knowing, how much did this effect your credit score?
Risk comes from not knowing what you're doing. (Warren Buffet)
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Thu May 02, 2013 2:24 pm |
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Gilderod55
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Does a short-sale of real estate equate to a foreclosure? |
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To answer the question of does it effect our credit, the answer is yes. It is displayed prominently if a lender (or realtor, landlord, etc.) reviews the credit report.
To make matters worse, when one has a security clearance, a foreclosure must always be explained...even if it is incorrect. Never a good thing.
Thank you for your advice. I will now begin the long arduous journey to get it corrected.
Will keep all posted, since this appears to be a gray area that needs to be addressed.
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Fri May 03, 2013 1:50 am |
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