Credit Report Errors

DID YOU ENTER INTO A SHORT SALE WITH YOUR MORTGAGE LENDER?

IF SO, YOU BETTER CHECK YOUR CREDIT REPORT AND MAKE SURE THAT IT IS NOT BEING REPORTED  AS A “FORECLOSURE”

Short sales are constantly turning up as “foreclosures” on consumers credit reports. There is a HUGE differences between a short sale and a foreclosure.  One of the major differences is that a consumer with a foreclosure can be locked out of getting a loan through Freddie Mac or Fannie Mae for up to 7 YEARS, while a consumer with a short sale is eligible for a loan with Freddie Mac and Fannie Mae in as little as two years.  Combined, these two institutions originate roughly 50% of the mortgages in the U.S.A.

What’s the problem?  The problem is that banks and credit reporting agencies  DO NOT A HAVE A CREDIT REPORTING CODE FOR SHORT SALES, SO THEY SIMPLY REPORT THEM AS FORECLOSURES.

This affects millions of consumers who have entered into short sales with their mortgage lenders.

The issue recently caught the attention of Senator Bill Nelson who  asked for a federal investigation into why the mortgage industry does not have a separate credit reporting code for short sales.

This issue is front and center with the newly created Consumer Financial Protection Bureau, who promised a fix for Fannie Mae by November 2013.  As of todays date, the problem remains unresolved.

What’s the solution?  The short answer is to hire a consumer law attorney who will represent you at no cost, and who can also recover damages for you from both the mortgage lender and the credit reporting agency.  Best of all,  the credit report will  be corrected, and in many instances, the entire trade line can be deleted, which can raise your credit score by up to 100 points.

 You can obtain a free copy of your credit report at www.annualcreditreport.com to see if your credit report contains this, or any other error.  This website is maintained by the Federal Trade Commission, it is free, and it does not impact your credit score in any manner.

 If you have questions about this article or any other issue with your credit, please contact attorney J. Dennis Card Jr. at 954-921-9133.