Executives at the Consumer Data Industry Association, the trade group that represents the three national credit bureaus (Equifax, Experian and TransUnion) along with several dozen other credit and consumer information companies, tell me that a new code has been developed to specifically designate short sales, so there’s no confusion with foreclosures.
 
The new code is to become available to lenders, servicers and others who report information about consumer credit behavior to the big three bureaus.
 
Why is a coding change potentially so significant? Because until now, there has been no widely recognized, uniform way for creditors to indicate to the big three credit bureaus that a homeowner engaged in a short sale.
 
According to the CDIA, there have been ways for lenders to report a credit obligation was “settled for less than the full amount,” when a mortgage was involved. That was sometimes interpreted to mean there was a foreclosure.

Las Vegas Home Owners Struggling To Pay Their Mortgage Should Call 702-677-8796