Credit Agency Reporting Glitch Creating Foreclosure Woes for Short-Sale Borrowers
May 23, 2013
The lack of a specific computer code for reporting short-sale mortgage transactions is creating numerous false reports of foreclosure on consumer credit reports, inhibiting their re-entry into the housing market, according to lawmakers on Capitol Hill and consumer advocates. Earlier this month, Sen. Bill Nelson, D-FL, dispatched letters to the Federal Trade Commission and the Consumer Financial Protection Bureau citing the disturbing consumer credit reporting practice of lumping short sale within the same industry code as a foreclosure in consumers credit reports. If a short sale is reported...