Fannie Mae to (finally) recognize short sales

Fannie Mae is going to fix a small problem with its software. It turns out, the company’s computers don’t recognize short sales.

What that means is that short sales (which typically keep someone from buying a home for two years) had to be labeled as foreclosures (which typically keep someone from buying a home for seven years).

Oops.

That’s a huge problem in states with high short-sale rates, such as Florida. And that’s why Senator Bill Nelson (D-FL) took up the cause. Working with the Consumer Financial Protection Bureau and Sen. Claire McCaskill (D-MO), Nelson got Fannie to agree to a fix.

By November 16, people who make short sales will have that properly labeled in Fannie’s system.

But what of those who were already there? They can contact the CFPB to file a complaint and (hopefully) have the record corrected.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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