Credit Repair Secrets: Remove Short Sales & Boost Scores 160 Points!

Hey, credit heroes. There is a disputing secret that can remove short sales and boost your credit scores up to 160 points. And today I'm going to teach you exactly how to do it, so you better stick around. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets. Short sales don't sound as bad as foreclosures, but they're reported the very same way, and they can do just as much damage to your credit score. For anyone new to credit Repair, a short sale is when you can't make your mortgage payments, so you sell your property for less than the amount that you still owe, and that loss is known as the deficiency. Banks will often say that short sales are a better option than foreclosures because they allow homeowners to avoid the stigma of a foreclosure. But in reality, most lenders won't distinguish between the two. Short sales and foreclosures are both reported to the bureaus as settled for less than the full amount or not paid as agreed. So the fallout is the same. Here's how this relates to us. Short sales rise when the home values fall. They spike from 2007 to 2009 during the great Recession, and they could be on the rise again. Short sales usually stay on your credit reports for up to seven years, but if payments were missed, the clock doesn't start until the date of the first delinquency. According to fico, the impact of a short sale depends on what your credit was like before the sale closed. Unbelievably, the higher your score was, the further it will fall. If your credit score was good, a short sale could drop at 100 points, but if your credit score was excellent, a short sale could drop it as much as 160 points. I know this sounds crazy, but that's the credit system. Short sales are complicated, frustrating, and difficult to get rid of, but that's why I worked so hard to finding the secret to disputing them. Here's the thing to remember before you dispute a short sale. Confirm your obligation to the deficiency and determine what, if anything, you still owe. Some lenders may ask you to sign a new promissory note saying that you'll pay off the remaining debt, while others reserve the right to bill later. Some banks will try to collect the money immediately after the sale closes, while others will turn the debt over to a collection agency. And in some cases a portion of the loan can be forgiven, but those are rare. Confirming your obligation of the deficiency gives you the opportunity to get in good standing with the lender. And if you're in good standing with the lender, you'll have more options when you start disputing. Here's why this is important. The first step to disputing negative items on credit reports is removing any conflicting personal information from your reports. Ultimately, when it comes to short sales, other than pointing out incorrect personal information, basic disputing techniques often don't work. You can dispute them, follow up, ask for reinvestigation, send warnings, or file complaints, but nine times out of 10, they still get verified. The good news is I discovered the secret to removing them and it's actually very simple. Here's what you need to know. The credit reporting bureaus, Equifax, Experian and TransUnion, they don't even use the word short sale. No they don't. It's not in their vocabulary. They use account status codes to communicate with furnishers and for reporting purposes. For example, if your account is sent to collections, there's going to be a specific two digit code that the furnisher reports to the bureaus to indicate that the account was sent to collections. If the account is charged off, there's going to be a two digit code for that. If your vehicle was repossessed, there's another code for that. But when it comes to short sales, no code exists. The bureaus never identify short sales with a unique status code. In fact, they almost always report them as foreclosures. And that is the secret to deleting short sales from your credit reports. Here's how it Step 1 dispute the short Sale with the Bureaus this letter can be really simple. You can just list the short sale, the account or reference number and the reason for the dispute like this short sale is inaccurate. Please remove it. You can use the Round 1 letter. If you don't already have the Round 1 dispute letter template, you can download it free at creditrepaircloud.com dispute letter templates and I'll put the link over in the show notes. If the short sale is removed, great, you're done. If not, you'll get a response stating that it was verified and you should move on to Step two. Step two Dispute the short sale with the lender this letter is also very simple, but this time you're contacting the lender directly, not the bureau's. You can use a round one letter again. Or if you have a credit repair cloud account, you can use the furniture dispute letter in our letter library. Simply fill out the letter and dispute the short sale. But this time also make sure to request the current status of the short sale. This is very important. Step Number three Wait for the Response when you receive the response from the lender, 9 times out of 10 it will be verified and they'll clearly identify the account status as a short sale. And this response is exactly what you need to get it removed. Step 4 File a complaint now that you have proof that the bureau's verified the item as 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 and you can file these complaints online@consumer finance.gov after filing your complaint, save a copy or take a screenshot because you'll need it in the final step. Step number five Send Warning Letters to the Bureaus Send a warning letter with a copy of your complaint to each of the three credit bureaus. Point out the facts and show your proof. Tell them they're inaccurately reporting a short sale as a foreclosure. Tell them that you have filed a CFPB complaint and you're considering legal action if the account is not removed immediately. Warning letter templates are also available to Download free@creditrepaircloud.com dispute letter templates if you follow these steps, you will almost always get a deletion. The bureaus understand that they're wrong and they'll do anything to correct it. I say almost because there are some cases where the bureaus simply ignore you or they respond inappropriately. If that happens, there's one additional step that you can take that's going to guarantee a deletion 100% of the time. Contact an FCRA attorney. They'll often help you for free in return for getting part of your cash settlement. If you want to learn more about FCRA attorneys, check out my episode FCRA Attorneys for Credit Repair. And one last note about this five step process. In some cases, lenders will use the status code AU to mark short sales. AU is a special comment code designated for random statuses that aren't significant enough to to have their own status code. If the status code AU is used, it may be a rare circumstance that this method may not work, and in that case you would want to dispute the short sale based on other factual errors. Here's my final point. A short sale not only means someone lost their home, but it means that their credit has been damaged so badly that they won't be able to buy a new home for a very long time. So if you're one of the millions of Americans who've gone through a short sale and take action and start the dispute process today. And remember, financial freedom is within reach. You just need to take these five steps and I'll end by saying if you don't already have a credit repair cloud account, check it out. It's the software that most credit repair businesses in America run on. Just sign up for a 30 day free trial at creditrepaircloud.com freetrial and if you'd like to change lives and grow your own credit repair business, check out our Credit Hero Challenge. It's a live experience that has helped tons of credit heroes to get certified in disputing and gain confidence as they run their credit repair business on a solid foundation so they can change a whole lot of lives and make a great living in the process. We're starting Next Challenge very soon, so you want to join before the doors close or you're going to have a long wait until the next one. So sign up right now@creditherochallenge.com and if you're finding value in the things that I share on this podcast, click below to subscribe and follow. Also, give me a five star review or share the show and help me to change more lives. And if you'd like to read the show notes, they're posted on my blog. And if you have a question or a comment, drop it down below because I read each and every one of them. If you want to learn more about how FCRA attorneys can work with you, check out my podcast, FCRA Attorneys for Credit Repair. So take care Credit Hero and keep changing lives.