Can short sale be removed from credit reports if principal was paid in full?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

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 10 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption