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Short Sale Credit Reporting Update

Tampa Short SaleAttorney – Credit Reporting Update

As an update to the short sale credit reporting problem, our fearless leaders in Washington D.C. are taking steps to address the problem.  Senator Bill Nelson (D-FL) has increased pressure to investigate the improper reporting of short sales to credit agencies.   Recently, it was exposed that the mortgage industry was reporting short sales incorrectly, and in some cases in ways that are more harmful than a foreclosure.  The news sent shock waves through the distressed property world as homeowners who underwent the short sale to avoid foreclosure were yet again hung out to dry by the mortgage industry.

Senator Nelson has called for 2 federal agencies to investigate the issue and report back to Congress.  The agencies would report directly to the Consumer Protection and Product Safety and Insurance Committee, both tasked with protecting consumers against fraudulent and unfair practices.  Even more alarming is that is appears the mortgage industry has known about this practice for an extended period of time.  According to reports, Federally Back Mortgage moguls Fannie Mae and Freddie Mac acknowledge that the problem was widely known, but no action was taken to remedy the issue.  Sounds like a new potential class action suit for the states to file…. Stay tuned for more