A Good News for Past Short Sellers: Become a Homeowner Again

Thumbs up on green backgroundThere are many people who face problem when they are eligible to repurchase a home because their past short sale credit shows up as a foreclosure. Earlier this year, U.S. Senator Bill Nelson of Florida and the Consumer Financial Protection Bureau (CFPB) started work on a credit code problem. This credit code problem was showing an error code that was not allowing past short sellers from getting a mortgage. The past short seller credit was showing up as a foreclosure that resulted in a denial of mortgage to eligible past short sellers.

This error had a great impact on the housing market because nearly 2.2 million past short sellers were blocked from entering the housing market again. This resulted in a huge loss for both the housing market and the home buyers.

The CFPB and U.S. Senator Bill Nelson worked together to come out with a fix for this issue that will be effective from November 16, 2013.

The new coding practices will help past short sellers in the following ways:

  • Submit all the documents /proof of the short sale to their lender
  • The lender will work for changing the coding to short sale
  • The lender will then re-run the loan process through Fannie Mae system

As an alternative, you can also follow the below given steps for getting a conventional loan:

  • Visit the official CFPB website or you can also visit this LINK directly to submit a complaint with CFPB.
  • You can also ask your past short sale lender to provide you with an executive compliant escalation phone number. A request for lender letter that states your past loan as a short sale can be placed by calling this number.

A response from any of the above two steps can be submitted to your new lender as a proof of your past short sale. This will help you to get a conventional loan when you are eligible for it. Please write through the comment box for any queries or additional information in this regards.

This entry was posted in Announcement & News, Home Mortgage and tagged , , , . Bookmark the permalink.

One Response to A Good News for Past Short Sellers: Become a Homeowner Again

  1. relaxwithjason says:

    Reblogged this on relaxwithjason and commented:
    If you need assistance with qualifing for a home mortgage please contact me at 678-460-1738.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s