Rachel’s Short Sale

Hi Paul.

I just went through a short sale, and through your advice was able to get a full release of liability. Thank you!

The short sale has now reported on my credit as settled for less than the full amount, and showed one 30-day late payment. I expected this to ruin my credit, but surpringly, this only affected my credit score about 40 points, and I still have good credit. After talking with a mortgage company about when I could possibly get financed again for another mortgage they indicate the only thing holding me back is that one late payment on my report. They said I could just wait one full year to show clean credit for 12 months and get financed then, but I was wondering if there is any way to have that late payment erased now since the account is closed and paid? Your thoughts and advice is very mush appreciated.

Thanks,
Rachel

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Hi Rachel,

The late payment could be challenged through a qualified written request or an FCRA dispute if it wasn’t complete and accurate, although I’d be inclined to leave it be, as you have done a tremendous job in successfully completing a short sale.

The mortgage company has advised in error.  The length of time required to pass from the completion of a short sale to obtaining a new mortgage is currently two-years.

Thanks for the questions and congratulations on a job well done.

Paul

Update with FNMA Announcement 8/13/08: Successful Short Sale