Can short sale be removed from credit reports if principal was paid in full?
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Can short sale be removed from credit reports if principal was paid in full?
We short sold our condo a year ago but did not receive a 1099cC form because the mortgage company informed us the sale paid off the principal and there was no debt remaining. The short sale has been reported to the credit companies as “settled for less than owed”. Can the short sale be removed from our credit reports, as the principal was paid in full?
Asked on June 16, 2012 under Real Estate Law, Utah
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Different credit reporting agencies have diffrent reporting rules with respect to different transactions. Assuming the short sale paid the full principal owed then the credit report should not state "settled for less than owed".
However, with respect to any short sale the fundamental tenet is that the lender does not get paid all that is owed it. From what you have written, it does not seem as though all money owed the lender was paid off. I suggest that you consult with an attorney that does consumer debt law to assist you further on this matter.
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