reporting after short sale

Negative reporting will only remain for 7.5 years from when you first defaulted on payment.
The promissory note you mention will be a new commitment/agreement.

I am curious to know why you are agreeing to the 50% with Regions.
Do you live in the home now, or was this a second home or investment property?
Are you getting assistance with the short sale transaction? If so, by whom?

Ok, so the $200,000 reporting will just stay the way it is (charged off) until it drops off? Will there show a "new" debt" for $100,000? Or will they actually report on the promissory note?
Not that it really matters, just curious at this point.

As far as why we would ever sign such a thing when other banks are taking far less for second mortages/helocs in short sales?
Well, do a little "googling" of Regions Bank and helocs. They pretty much will only take 50% in payments or 30% in lump sum at closing. No matter what the amounts or circumstances of the seller. Why? Because they can.

1. Florida is a recourse state so if we foreclose we will still be responsible for the first and second deficits after they sell it for a lot less than what we are getting in the short sale. So hello, judgements and garnishments.
2. We cannot file chapter 7 due to not being able to pass the means test.
3. Chapter 13 isn't an option because, due to income, we would be required to pay back 100% of debt over 5 years instead of 30.

While our income puts us too high for BK, it is only about half of what it was when the loans were secured. We were never living beyond our means, its just that at the time, our means were a lot higher. Then we got the double whammy of unemployment and stock market meltdown. During this time, a lot of bad decision were made due to thinking things would turn around. We have gone from 30 years of perfect credit and within a few years of being able to retire early to a credit rating of 450, no savings, no retirement and no hope.

Anyway, our plan is to keep our payments as low as possible. They were at least willing change the terms from 15 to 30 years. Because: 1. We will probably never live long enough to pay it off so we don't have to worry about a 1099. 2. If our income situation changes, as it inevitable will, due to age, health, etc. we will immediately file chapter 7. Therefore, we want to have paid as little as possible into it.

Of course, if anyone else has any better ideas......

Hi,
I know that the charge-off stays in the credit report for about 7 years and after that it get dropped off. What you can do in the meantime is try to add some positive information in your reports. It will help you raise your score which had and will get negatively affected due to negative items in your reports.