How to overcome the short sale/foreclosure dilemna with Fannie Mae (mortgage, mortgage)

[FMtech1]

Hello everyone, I work as a Fannie Mae technician which basically means I troubleshoot alot of different crap. Part of my duties entail correcting your loan applications that go through our system. This thread is for those of you that experienced or have a short sale on your credit, but are being denied because it looks like a foreclosure. Here is what you do

Every tradeline on your credit report has what are called two M.O.P. codes (manner of payment) which tell systems what your tradeline is. One MOP code, the max deliquency MOP code is basically the worst status your tradeline has ever been. So for example, if it was charged off, you would have a 9 or let's say you had a bankruptcy, it would be a 7. The second MOP code is called either the current or last MOP code and it is obviously what the current status of your tradeline is, so in case of short sales and assuming you caught up on your payments, it would be a 1 for current.

Two problems exist; one is that no code exists for short sales. Every creditor the second you are late on your mortgage immediately begins reporting foreclosure. That way if it actually turns into a foreclosure, they can just keep the ball rolling. Second, when it comes to benefiting banks, their accuracy in updating your credit is 100% and at the speed of lightning, yet if you catch up on your payments or improve, they tend to not update your tradeline; therefore your last or current MOP code stays as the max deliquency code.

So you will need to make sure you current/last MOP code is updated correctly and that none of your MOP codes are 8. You will also have to make sure the remarks code on your tradeline has no foreclosure verbiage, such as account closed, account charged off, etc. You want it to have short sale verbiage, such as account settled for less that full balance, or ideally: foreclosure discontinued.

I attempted to shoot this up the Fannie Mae pipeline for approval to begin disclosing, however was denied go figure

[tinytrump]

I hate credit bureaus- totally unfair and full of mistakes and very penalizing with out explanations... (like a tornado for instance) and NOW being handled overseas by who knows whom?? yes, they have outsourced your credit information-- talk about security?

[Modification Specialist]

Good information -

Short Sales falling under? MoP Code 8R = redeemed (closed) mortgage account (Stretching....).

Another point - redefining foreclosure (property) contrary to repossession (auto)

Link - How to read your transunion credit report

MOP Codes;
00 Not rated, too new to rate, or approved but not used
01 Pays as agreed
02 30–59 days past the due date
03 60–89 days past the due date
04 90–119 days past the due date
05 120 days or more past the due date
07 Paying or paid under Wage Earner Plan or similar arrangement
08 Repossession
8A Voluntary repossession
8D Legal repossession
8P Paying or paid account with MOP 08
8R Repossession; redeemed
09 Charged off to bad debt
9B Collection account
9P Paying or paid account with MOP 09 or 9B
UC Unclassified
UR Unrated