We completed a short sale in April of 2010. We had a first and a second mortgage and received 1099's for both. When we decided to short sale in 2009 we immediately enrolled in a credit monitoring service. Everything looked great after the short sale despite the slight dip in score which we expected. We are ready to buy again and have managed to save 20% down. We are currently in escrow but our lending process has stalled due to a hiccup with an Instant Merge Report pulled by Credco. Credco is a third party credit reporting agency that pulls all 3 bureaus reports and merges them into their own report. On this report compiled by Credco it is showing that our shortsale via BofA and Citi are being reported with an MOP status of 9. A coding of 9 is essentially a foreclosure on our file, which would mean waiting 5+ years vs 2 years to buy another house. We've spent the last 3 days placing calls to 1) both lenders to request corrections 2) to the bureaus to figure out who, if not all, are reporting our short sale as MOP-9 and 3) to Credco itself. Our old lenders are still in the process of researching and possibly correcting errors. All 3 bureaus stated that none of them were reporting our short sale as a foreclosure/charge off/collection. If one of them were reporting that we would've thought that we would have noticed on our credit report that we get monthly from our credit monitoring service. So we called Credco for more information. We were told that both Equifax and Transunion are reporting the short sale correctly but Experian is the one reporting both BofA and Citi as a foreclosure. So we called Experian back to further investigate. Experian says that nowhere in our file is there a reporting of foreclosure/charge off/collection. They don't even use the same number codings as transunion and equifax. As it turns out Experian has had similar issues with Credco and how the file is being transferred over and translated. They stated that Credco could call their corporate office and have the issue rectified.
And so the finger pointing begins. They are both perpetually blaming the other. Credco insists that it's not them that our short sale was a essentially a foreclosure and that's why it's coded that way (ummm no!). We've asked Credco to provide us with a piece of paper that shows they are in fact reporting our short sale as a foreclosure so that we can go back to Experian to dispute. Without proof there is nothing to dispute since Experian insists they aren't reporting the foreclosure on our file. We even provided Credco with a copy of our report from Experian in which there is no mention of a foreclosure/charge off/ collections status any where. The only thing that is notated is 150 days and 120 days past due. We're starting to think the error is due to Creco's software and are hoping that Credco will remove the inaccurate information. For now we are waiting on a call back from Credco since they are "researching" the inconsistencies.
We're running out of ideas on how to fix this and are trying to think of what happens if this cannot be fixed. We knew that this process wasn't going to be easy but wow.
Does anyone know of any lenders in the San Diego area who are very experienced with clients who have short sold in the past. I guess they would have to not be using Credco and/or can skip the Desktop Underwriter approval and do a manual underwrite instead?