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LEARN HOW TO START, RUN, OR GROW YOUR CREDIT REPAIR BUSINESS

How to Remove a Short Sale From a Credit Report

By: Daniel Rosen February 02, 2021

How do I remove a SHORT SALE from a credit report? 

If you’ve ever tried to get a short sale removed from a credit report, you know how hard it can be! Alotta folks get stuck and can’t ever get rid of it.

But what if I told you there’s a secret method you can use that will get you a deletion nearly every single time you use it?

Today I’m going to reveal the step by step secret way to remove a short sale from any credit report EVEN if you’re just getting started in credit repair. 

So, what exactly is a short sale anyway?

 


A short sale is when the lender is willing to accept a home or a piece of real estate being sold for less than the amount owed on the mortgage. 

Typically this happens because a homeowner is really far behind on making payments and can't catch up and the house is worth less than the amount they owe. 

Now this really sucks for the homeowner because according to QuickenLoans a Short Sale on your credit report can lower your score by 160 points and stay on the report for YEARS! 

And because of the pandemic, we’re seeing a surge of short sales and major credit traumas to over 46 million Americans...

Which is exactly why the world needs Credit Heroes now more than ever! 

But typically short sales are really hard to get rid of using any basic disputing technique.

You can dispute them, follow up, ask for reinvestigations, send warnings or even file complaints until you're blue in the face, and 9 out of 10 times they will just get verified…

Leaving Credit Heroes frustrated and client’s devastated. 

But, it doesn’t have to be that way! 

There’s a secret method that really works. 

This strategy revolves around the fact that the credit bureaus don’t use the word “short sale”. 

It’s not part of their vocabulary! 

The bureaus have account status codes they use for communicating with furnishers and for reporting purposes. 

For example, if your account has been sent to collections, there will be a specific 2 digit code that the furnisher reports to the bureaus to indicate the account was sent to collections. 

Or, let’s say your vehicle was repossessed - there will be a two digit code for that...

If you're 30 days past due, there is a code for that…

60 days yep, a different code…

If the account is charged off… same thing… a code is assigned to that status. 

This is really important! 

When it comes to short sales, there is NO code. It doesn’t exist. 

The bureaus simply do NOT identify short sales with a status code and almost always report them as foreclosures!

And there lies the ERROR and the secret to deleting short sales from a credit report!

So here’s what you need to do to make it happen!

Step 1 - Dispute the short sale with the 3 credit bureaus. Send a round one letter, which you can get with a free trial of Credit Repair Cloud by going to creditrepaircloud.com/freetrial. 

In the letter, list the short sale as inaccurate, and ask for them to delete it. If it’s removed, great - your all set. 

If not, you’ll get a letter back stating it was verified and you can continue to step 2.

Step 2 - Write a dispute letter and send it to the lender. The letter can be really simple. You can use round 1 letter and simply dispute the item, but also request the current status of the short sale. Just remember in this step you’re going directly to the lender, not the bureau. 

Step 3 - Wait for the response. When you receive the response from the lender, 9 out of 10 times it will be verified and clearly identify the account status as a “short sale” - this is exactly what you need to get it removed. 

Step 4 - Now that you have proof that the bureaus verified the item as a foreclosure and you have proof from the lender it is actually a short sale - it’s time to file a complaint with the CFPB. This can be done online at ConsumerFinance.gov. After filing your complaint, take a screenshot of the complaint because you’ll need it in the final step. 

Step 5 - Send a bureau warning letter with a copy of the complaint to each credit bureau. Point out that they are reporting the short sale as a foreclosure, that it is inaccurate, that you have filed a CFPB complaint and that your next step will be filing a lawsuit if the account is not removed immediately. 

IF you follow these 5 steps - you will almost always get an automatic deletion. 

The bureaus understand that they are wrong and will do anything they can to correct it. 

Now, I say almost, because there are some cases where the bureau simply ignores you or responds inappropriately. 

If and when that happens, there is one additional step you can take that will get a deletion 100% of the time!

You will need to contact an FCRA attorney. 

By following the steps I just went over, you will have written proof, solid evidence, that the bureaus have violated the Fair Credit Reporting Act. 

When the FCRA attorney does their job your client will not only get a deletion, but will likely get a hefty financial settlement out of it. 

And if you’re worried about what it costs to hire an FCRA attorney, most work on a contingency basis, so they don't charge you unless they win the case with a cash settlement, and at that point, they typically split that settlement with the client.   

That’s it! Now you can remove a short sale from any credit report, nearly 100% of the time!

Pretty exciting, right?!

And, if you want to know more about how to dispute items, and even get certified in basic disputing, all while I hold you by the hand as you launch your very own credit repair business in just 14-days, then you gotta join the next Credit Hero Challenge! We start in a few days so click the link in the video description or go to creditherochallenge.com today!

 

 

Be sure to subscribe on your favorite platform below!

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Topics: Podcast

Transcript

0:00  

How the heck do I remove a short sale from a credit report? Now I hear this question all the time, so today I'm going to reveal the step by step secret way to remove a short sale from any credit report, even if you're just getting started in credit repair. So stick around! 

 

So the big question is this. How can we take our passion for helping people with their credit and turn it into a successful business without taking loans without spending a fortune by bootstrapping it from nothing, so we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets!

 

If you have ever tried to get a short sale removed from a credit report, you know how hard it can be! A whole lot of folks get stuck, and they just can't get rid of it. But what if I told you that there is a secret method that you can use, that will get you a deletion nearly every single time you use it. Now, before I reveal that method to you, be sure to subscribe so you don't miss any of the secrets that I share every week. And if you want me to hold you by the hand, as you launch your very own profitable credit repair business, go to creditherochallenge.com or click the link down in the description and join today. Okay, so what exactly is a short sale anyway? A short sale is when the lender is willing to accept a home or a piece of real estate being sold for less than the amount owed on the mortgage. Typically, this happens because the homeowner is really far behind on making payments, and just can't catch up, and the house is worth less than the amount that they owe. Now, this really sucks for the homeowner, because according to Quicken Loans, a short sale on your credit report can lower your score by 160 points, and it stays on the report for years. Now, because of the pandemic, we're seeing a huge surge of short sales and major credit traumas to over 46 million Americans, which is exactly why the world needs Credit Heroes now more than ever. But typically, short sales are really hard to get rid of using any basic disputing technique. You can dispute them, follow up, ask for re investigations, send warnings, and even file complaints until you're blue in the face, and nine out of 10 times they're just going to come back verified, which leaves Credit Heroes frustrated and clients devastated. But it doesn't have to be that way! Because there is a secret method that really really works. And it makes them go away. Now, this strategy revolves around the fact that credit bureaus, they don't use the word short sale, it's not a part of their vocabulary. See, the Bureau's have account status codes they use for communicating with furnishers and for reporting purposes. So nearly every item on a credit report has a status code. For example, if your account has been sent to collections, there's going to be a specific two digit code that the furnisher reports to the Bureau's to indicate that the account was sent to collections, or let's say your vehicle was repossessed, there's going to be a two digit code for that as well. Or if you are 30 days past due, there's a code just for that. And 60 days, yep, a different code for that. If the account is charged off, same thing, another code is assigned to that status. Now, if you're listening to me now, while you're doing something else, stop what you're doing, because this is really important. When it comes to short sales. There is no code. It doesn't exist. See, the bureau's simply do not identify short sales with a status code at all. And they almost always report them as foreclosures and there lies the error. And the secret to deleting short sales from a credit report. So here's what you need to know, to make it happen. Step number one, you dispute the short sale with the three bureaus, you do this with a basic round one letter, which you can get with a free trial of Credit Repair Cloud by visiting creditrepaircloud.com, slash free trial. Now, in that letter, you list the short sale as inaccurate, and you asked for them to delete it. Now, if it gets removed, great, you're all set. But if not, you're going to get a letter back from the bureau stating that it was verified. And that's when you continue to step number two. Step number two, you write a dispute letter, and you send it to the lender. Now the letter can be really simple. You can even use the same round one letter again and simply dispute the item, but also request the current status of the short sale. Now, just remember, in this step, you are going directly to the lender and not the bureau. Step number three, you'll wait for the response. And when you receive the response from the lender, nine out of 10 times it's going to come back is verified, and it's going to clearly identify the account status as a short sale. And guess what, this is exactly what you need to get it removed. Step number four, now that you have proof that the bureau verify the item is a foreclosure, and you have proof from the lender that it's actually a short sale, it's time to file a complaint with the CFPB. Now, this can be done online in just a few minutes at consumer finance.gov. Now, after filing your complaint, what you want to do is take a screenshot of the complaint, because you're going to need it for the final step. Step number five, you send a bureau warning letter with a copy of the complaint and you send this to each credit bureau and point out that they are reporting the short sale as a foreclosure and that is inaccurate. Okay, let them know that you filed a CFPB complaint, and that your next step is going to be filing a lawsuit if the account is not removed immediately. Now, if you follow these five steps, you will almost always get an automatic deletion, because the bureau's understand that they are wrong, and they will do anything they can to correct it. Now, I say almost because there are some cases where the bureau simply ignores you or responds inappropriately. And when that happens, there is one additional step you can take. And it's going to get you a deletion 100% of the time. Okay, you're going to need to contact an FCRA attorney. FCRA is Fair Credit Reporting Act, okay? You need an FCRA attorney. And by following the steps that I just went over, you are going to have written proof, solid evidence that the bureaus have violated the Fair Credit Reporting Act. When the FCRA attorney does their job, your client will not only get a deletion, but they're also going to get a hefty financial settlement out of it as well. Okay? They're going to get cash. Now, if you're worried about what it costs to hire an FCRA attorney, here's the good news! Most of them work on a contingency basis. So that means they don't charge you unless they win the case. And they win a cash settlement. And then at that point, they typically split that settlement with the client. That's it! Now you can remove any short sale from any credit report nearly 100% of the time. Pretty exciting, right? And if you want to know more about how to dispute items, and even get certified in disputing all while I hold you by the hand, as you launch your very own credit repair business, then you gotta join the next Credit Hero Challenge. We're actually starting one in just a couple days. So click the link in the video description, or go to creditherochallenge.com and sign up today! And if you're finding value in this podcast, click below to subscribe, okay, and if you're feeling kind, leave a review, or rate me or give me a thumbs up because this is a new podcast, and I can use all the help I can get. And I can't wait to see you in the next episode. And until then, be a Credit Hero and keep changing lives!

 

Want to fast track to creating an amazing business that helps people, changes lives, and makes you a great living in the process? Then I'd like to invite you to my free online training at creditrepaircloud.com/freetraining. In this free training, you will learn how to get clients willing to pay you even if you're just starting out how to get easy credit repair results without being an expert, and how to get all the clients you'll ever need without paying for advertising. Again, this training is absolutely free. Just visit creditrepaircloud.com/freetraining.

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