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!