Homeowners who used short sales find their credit sunk

foreclosuresoc-short-sale
Wendy Bana, 50, a private school principal in Orange County, California, short-sold her home three years ago because she had to relocate from Oregon for a job. Last year, she discovered that her short sale had been miscoded as a foreclosure, dashing her dream of buying a cabin at Lake Arrowhead, California.

Michael Son was just weeks away from closing on a three-bedroom ranch house in New Jersey last year when his lender called with bad news.

Despite the advertising executive’s 720 credit score and proven ability to make a 20 percent down payment, he couldn’t secure the loan. Somewhere in the fine print of his credit history, the short sale of a previous house in 2010 had been misidentified as a foreclosure.

Son withdrew his offer and reluctantly settled into yet another rental with his wife and two daughters, ages 4 and 6.

Click to read more