Short Sale Question - Posted by chris

Posted by John Corey on May 17, 2006 at 06:51:12:

They do not report it as anything other than paid as agreed.

The lender is agreeing to a voluntary reduction in the debt in exchange for a pay off so there is nothing much they can say. Having the loan paid off will not remove the late payments prior to the pay-off.

What they can do is send a notice concerning the debt relief. It is an IRS 1099 I think. Many lenders do not send it. The borrower should still report the debt relief as it is taxable income to them. I suspect borrowers rarely report the debt relief if they do not get an notice.

John Corey

Short Sale Question - Posted by chris

Posted by chris on May 15, 2006 at 19:08:13:

I got caught off guard today…

How do the mortgage companies report a short sale on the seller’s credit report?

Thanks for any input