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There should be two entries regarding the home debt on the credit report.
Your personal obligations to pay for the loan borrowed was discharged in bankruptcy in 2008 and should be noted as such on all three credit bureaus.
The mortgage obligation against the security, i.e. the house was resolved as a short sale which is a compromised settlement and release.
And this will show as a Short Sale on my credit report? I was hoping I wouldn't take 2 hits, that the Discharge through Chapter 7 Bankruptcy would take care of it. I'm trying my best to rent with the option to buy something that I can spend the rest of my life in.
Since your credit report is a listed of personal liabilities and not assets, I would recommend disputing anything being added to your report regarding the mortgage debt other than noting it was "satisfied". The creditor may try to report is was settled, this has a negative impact on your report. If the creditor does this i would file an on line challenge with each credit bureau.
That is exactly what I did. I sent each credit reporting bureau a copy of the letter from the title company stating that the judgment was satisfied. I disputed it with all 3 bureaus. I heard back from TransUnion telling me there was nothing on my credit report, which was wrong. I then called them and hopefully it will be resolved.
If they report it as settled, challenge the report on line on each bureau's website. It is a fairly easy form to complete and requires the creditor to respond. If they dont the information is removed. Technically, I think they can mark it as settled, but I would still challenge if they do as you have nothing to loose. They often dont follow up.
Once this judgment is resolved, I realize that it can stay on my report for up to 7 years, but will my FICO score rise?
The HOA cost should show as satisfied and not settled. That you can demand be accurate. You should send a letter to the HOA board requesting written confirmation of payment in full. This can then be sent to credit bureaus.
I most certainly will do that! Thank you so much for helping me!
Your fico score will rise in the 7 years afterwards assuming no new negative credit info.
Trust me, there is and will be no more negative credit information!
I am glad to hear the idiot bank finally approved your short sale. That was best option for all. Too bad it was not done 2 years ago and avoid all the extra stress and costs.
I wish you the best of luck. Take Care.
They lost 6 contracts due to not responding. The 7th person held on for 9 months only to be told they raised the price. He walked. The last one was a cash offer and the bank wanted $5,000 more from them, but they went for it. Finally, it closed on 5/28.