From the St. Petersburg Times:
NEW PORT RICHEY “” When his home’s value plunged, George Albright opted to sell it for less than he owed, believing the “short sale” would scar his credit less than a foreclosure.
But after saving for a down payment and building back his credit, the single father learned he still wouldn’t qualify for a new loan. After two years in the penalty box, underwriters said, he still had five more years to go.
To his surprise, his credit history showed a foreclosure, a “kiss of death” stemming from a strange credit quirk. Banks and credit bureaus have no special code to report a short sale.
Without the distinction, home owners who won the bank’s approval for a short sale of their underwater home are seen as no different than years-long defaulters who ended in foreclosure.
Loan and credit experts call this oversight one of the biggest challenges for today’s short sellers, especially as many boom erang back to the mortgage market in hopes of buying a new home.
ST PETE TIMES
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This is all part of the master ponzi scheme of destroying every bodys credit and they have you by the balls. Now you have choice but to rent one of the home’s that are being bundled and bought by investor. This is the part of the master ponzi scheme where the investor gets screwed again by the banks they really know how to polish a turd and sell it. They convince the investor that buying these home’s is a good buy AAA investment what they didn’t tell them is renter’s can be a rough crowd to deal with and being a landlord is something you have to be ready to handle. Now the banks can foreclosure on the investors when renting these homes fails.