I completed a short sale 3 years ago and agreed to a promissory note to cover some of the balance. I fell behind on the promissory note several times and so there are numerous 120 day late notices reporting. The company has offered a doable settlement but stated that the account will be reported as "settled for less than balance". Trouble is...this servicing/collection agency, Realtime Resolutions, is reporting this unsecured promissory note as a mortgage on my credit report. The account appears to be a foreclosed mortgage so I have both my short sale record with the bank reporting as well as this promissory note account which on the surface also appears to be a mortgage. Concerned that although I would qualify for a mortgage given it has been 3 1/2 years post short sale would be denied because it appears I have an existing mortgage that is in foreclosure. Is it even appropriate to report an unsecured promissory note as a separate mortgage? This is not a home equity or second mortgage situation. A pure short sale. Thoughts..advice on next steps. Credit bureau is no help.
