Legal Question in Credit and Debt Law in California

Re: foreclosure law

No. They can show that a notice of default was filed and that a trustee's sale has been posted (if it had been). In order to report it as a foreclosed property, they would have had to have completed the foreclosure.

Re: foreclosure law

You should try to get the bank to agree that they will remove the notice of default from your credit report if you are successful in doing a short sale because you really do not have to do anything, you can just walk away and owe nothing--but this is only true if you have not refinanced or you do not have a second--in which case you will owe a deficiency if you do not short sale. But even if the bank refuses to remove the negative from your report, make sure they report that the entire balance was paid in full. A notice of foreclosure is not the same thing as a foreclosure sale. It just means you were late in making your payments. If you sell your property before the foreclosure sale--that should look pretty good to most potential creditors. Also, a stern letter from an attorney warning of potential violations of the Fair Debt Col Practices Act and Fair Credit Reporting Act can often motivate a bank to remove negative reports; even those that are accurate.